European shares ticked higher in early trade, modestly extending gains from the previous session, with trade likely to be muted ahead of this week's key meeting of the European Central Bank, and with Wall Street closed for a public holiday on Monday.
The FTSEurofirst 300 was up 0.1 per cent at 1084.40, having ended 0.5 per cent higher on Friday after US Federal Reserve Chairman Ben Bernanke kept the door open for further stimulus if needed.
The market's focus is now squarely on the ECB's meeting on Thursday, with investors hopeful ECB President Mario Draghi will offer some details about the bank's bond-buying scheme to lower borrowing costs of countries such as Spain and Italy.
"It's all on hold for the ECB is what we're seeing... I rather fear that we're not going to get clarity. We'll probably sell-off if we don't get a full bond-buying program," Joe Rundle, head of trading at ETX Capital, said.
Rundle reckoned that, in the case of disappointment, the FTSEurofirst 300 could test the 1,050 area, support seen at the beginning of August.
Reuters