The German DAX index outperformed its European counterparts on Monday, driven by gains in Adidas shares following an analyst upgrade. Meanwhile, investor focus remained on major central

bank policy meetings scheduled throughout the week.

The pan-European STOXX 600 index rose 0.5%, with the DAX up 1%.

Adidas, the German sportswear maker, saw a 5.2% surge in its shares, propelling it to the top of the DAX, after Bernstein raised its rating on the stock to "outperform." The upgrade was based on expectations that factors such as the return of Chinese influencers and Lionel Messi's move to Inter Miami would benefit the Adidas brand.

This week is marked by key meetings of the U.S. Federal Reserve, the European Central Bank (ECB), and the Bank of Japan.

The Federal Reserve is expected to maintain interest rates at their current level following its two-day policy meeting on Wednesday, while the ECB is anticipated to raise interest rates by a quarter percentage point on Thursday in an effort to curb persistent inflation.

Daniela Hathorn, senior market analyst at Capital.com, noted the evolving momentum of the ECB and highlighted the contrasting approaches of the two central banks, saying, "The ECB has picked up momentum in the last three months or so, but up until then, it was sticking to more conservative hikes. Whereas we've seen the Fed being a lot more stern and aggressive from the beginning."

The STOXX 600 index had a stronger start to the year compared to the U.S. S&P 500 index but lost momentum during the second quarter as investors favored growth-oriented stocks over value stocks.

Novartis, a Swiss pharmaceutical company, saw a 0.6% increase in its shares after announcing its agreement to acquire Seattle-based biotech firm Chinook Therapeutics for up to $3.5 billion.

The European healthcare sector index rose 0.4%, while the personal and household sector index led gains with a 1.2% rise.

On the other hand, shares in SES, the satellite company, experienced a 9.2% decline, placing it at the bottom of the STOXX 600, after announcing the resignation of its CEO, Steve Collar. Photo by Pythagomath, Wikimedia commons.