European stocks struggled for direction on Tuesday, with banking shares declining ahead of the U.S. and UK central bank meetings this week, while Sweden’s H&M surged after reporting a better-than-expected profit.

The pan-European STOXX 600 index .STOXX rose just 0.1% by 0723 GMT, with retailers .SXRP, miners .SXPP and travel stocks .SXTP leading the gains.

The world's second-biggest fashion retailer HMb.ST surged 12% after its preliminary quarterly profit was better than expected and it signalled a better recovery from the pandemic's impact, boosting other retail stocks.

Fiat Chrysler FCHA.MI rose 6% and Peugeot maker PSA PEUP.PA slipped 1% after the carmakers restructured the terms of their planned merger to conserve cash.

Asian shares rose after data showed China’s industrial output accelerated the most in eight months in August, while retail sales grew for the first time this year, suggesting its economic recovery was gathering pace.