European shares ended higher on Monday, boosted by technology-focused stocks as risk sentiment improved on growing expectations of a U.S. interest rate cut next month, while investors also focused on progress in the Ukraine peace plan.

The pan-European STOXX 600 was up 0.31% to 563.83 points at close after the index logged its steepest weekly drop since late July on Friday.

The upbeat momentum was led by Wall Street following dovish comments from U.S. Federal Reserve policymaker John Williams on Friday, signalling that interest rates could fall "in the near term".

This bolstered the likelihood of a cut at the central bank's December meeting, even as several Fed officials remain divided over the policy outlook amid limited clarity on the health of the U.S. economy.

"We do have this optimism after just one person at the Fed mentioned the idea of near-term rate cuts, and we see the positive impact of that in the U.S. markets, and that's echoing positively across European markets as well," Ipek Ozkardeskaya, senior market analyst at Swissquote Bank, said.

In STOXX 600, the region-wide technology index provided the biggest boost, up 1.4% after a sharp fall in the prior session, with AI-related names leading gains.

Chip equipment maker ASML jumped 3.1% and chipmaker Infineon advanced 3%, while Siemens Energy - which supplies heavyweight energy infrastructure for chip manufacturing - climbed 5.5% after Friday's 10.1% fall.

Source : Reuters