The pan-European STOXX 600 index was up 1.2% at 514.17 points, as of 0708 GMT, and set for the best day in nearly one month, if gains hold.

Technology stocks chimed with a rally in their Asian peers, and jumped 2.6%.

Basic resources gained 2% after prices of base metals rose, buoyed by hopes of an interest rate reduction in the U.S. next week..

All sub-sectors were trading in the green.

The ECB will meet at 1215 GMT on Thursday, where it is widely expected to cut interest rates by 25 basis points. Markets will be more focussed on comments by ECB President Christine Lagarde, due at 1245 GMT, to confirm if further rates are to follow in October and December. Meanwhile, Spain’s consumer price figures showed the 12-month EU-harmonised inflation eased to 2.4% in August, causing the benchmark IBEX 35 to gain more than 1%.

Swedish inflation eased 0.5% in August, just below forecast.

Shares of Roche fell 4.5% after the Swiss drugmaker said the promising results of an early-stage trial of its experimental weight-loss pill were based on just six patients.