European shares edged up for an eighth consecutive session as economic recovery optimism boosted industrial stocks.

The pan-European STOXX 600 rose 0.4% as investors bet on central banks maintaining stimulus.

All eyes are now on the Federal Reserve’s policy meeting getting underway on Tuesday. Investors will be seeking insight on whether the central bank has started to taper bond purchases, Reuters reports, and whether policymakers are worried about mounting inflation.

“We don't expect officials to rush into taking a decision now, (but) it would be interesting to see whether there will be a discussion around the matter, and if so, whether we will get any hints over a potential desired pace of withdrawal," according to Charalambos Pissouros, senior market analyst at JFD Group.

"A fast pace may suggest that Fed officials do not see the surge in inflation as transitory as they did in the past and may hurt equities."

The STOXX 600 has hit all-time highs over the past few weeks, following dovish signals from the European Central Bank regarding its position on rising inflation.

Furthermore, Germany's DAX came close to record highs as consumer prices increased 0.5% month-on-month in May, matching economists' predictions.

Investors will also be focused on eurozone inflation data out later in the week.

European industrial stocks rose 0.9%, whilst technology shares rose around 1% following a record high for the Nasdaq on Monday.

Moreover, London’s FTSE 100 gained 0.4% as the UK posted a record rise in the number of employees on company payrolls last month as coronavirus restrictions eased.