Markets are yet to see by how much the ECB will raise its benchmark rate, as the central bank debates between a 50 basis point or 75 basis point increase, with expectations now leaning towards a bigger increase but not with full conviction.

The pan-European STOXX 600 index rose 0.5% by 0719 GMT. Cyclical sectors including miners, banks and insurers gained between 1.0% and 1.1%.

The basic resources sector attempted to recover from declines of more than 2% on disappointing China trade data in the previous session amid worries of metals demand.

(Reporting by Shreyashi Sanyal in Bengaluru; Editing by Rashmi Aich)