European Stocks Flirt with Three-Week High

European stock markets headed for a fourth straight day of gains on Monday as investors remained optimistic about the outlook for the U.S. economy after the International Monetary Fund late last week said this will grow at a faster pace than previously expected.

The Stoxx Europe 600 index XX:SXXP +0.24%  rose 0.2% to 321.81, setting it on track for its highest closing level since early December.

Shares of Serco Group PLCUK:SRP +3.48%  gained 2.6% after the government-services firm said it secured a six-month extension to its contract with the Australian Government Department of Immigration and Border Protection to provide detention services at centers on mainland Australia and Christmas Island.

Shares of Skanska AB SE:SKAB +1.56% put on 1.6% after the construction firm said it has been commissioned in a joint venture with Danish MT Hojgaard ASDK:HOEJB -4.89% to build a bridge in Gothenburg.

More broadly, investors welcomed news that the IMF has become more optimistic on the U.S. economy. Managing Director Christine Lagarde said Sunday on NBC’s “Meet the Press” that growth is picking up, and that it is poised to accelerate as the business climate sees more certainty in 2014. Adding to that sense of certainty is a budget deal reached by Congress and clear communication from the Federal Reserve about its plan to wind down its bond-buying stimulus, Lagarde said.

U.S. stock futures pointed to a higher open on Monday.

Among country-specific indexes in Europe, Germany’s DAX 30 index DX:DAX +0.38% climbed 0.4% to 9,432.84, on track for an all-time closing high.

France’s CAC 40 index FR:PX1 +0.10%  was flat around 4,194.67 and the U.K.’s FTSE 100 index UK:UKX +0.41%  put on 0.4% to 6,630.00.

Source: Moneymarket