UPDATE 2-Europe's STOXX 600 hits near 3-week high as retail, mining stocks climb

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* German ZEW investor sentiment rises unexpectedly in Sept
* H&M records biggest daily rise in nearly six months
* Upbeat China data boosts miners, luxury stocks

(Updates to market close)
By Sruthi Shankar
Sept 15 (Reuters) - Europe's STOXX 600 closed at a near
three-week high on Tuesday as robust industrial output data from
China boosted mining and luxury stocks, while Sweden's H&M
surged after reporting a profit rebound.
Shares in the world's second-biggest fashion retailer
HMb.ST jumped 10.8%, recording their biggest daily rise in
almost six months after the company beat quarterly profit
forecasts as it recovered more quickly than expected from a
coronavirus-induced slump. The retail index .SXRP rose 2.3%, leading sectoral gains
in Europe.
Miners .SXPP rose 1.7% after data showed industrial output
in China, the world's top metal consumer, accelerated the most
in eight months in August, while retail sales grew for the first
time this year. China-reliant luxury stocks like LVMH LVMH.PA , Kering
PRTP.PA and Hermes HRMS.PA also gained, boosting the STOXX
600.
The ZEW economic research institute said investor sentiment
in Germany rose unexpectedly in September, signalling confidence
in a recovery from the coronavirus crisis. "The hard data – retail sales, industrial production,
exports – suggest activity is largely rebounding as we expect,
in a tick-shape manner," said Florian Hense, an economist at
Berenberg.
"After initially rebounding strongly, the trajectory of the
recovery has flattened, but continues firmly during Q3."
All eyes are on the conclusion of the U.S. Federal Reserve's
monetary policy meeting on Wednesday, the first since Chairman
Jerome Powell unveiled a shift toward greater tolerance of
inflation, effectively pledging to keep interest rates low for
longer.
The Bank of England is also set to meet on Thursday.
The UK's FTSE 100 .FTSE jumped 1.3%, outperforming its
European peers after a handful of positive corporate updates,
better-than-expected jobs data and as Prime Minister Boris
Johnson faced opposition within his party to proposed
legislation that would breach the Brexit treaty. .L
Britain's Hiscox HSX.L surged 17.0% to the top of STOXX
600 as London judges ruled that some insurers were wrong to
reject claims from small firms battered by the COVID-19
pandemic, but the costs were less than expected, according to
the company. GBP/
The broader pan-European STOXX 600 index .STOXX rose 0.7%
to close at its highest since Aug. 27, while euro zone stocks
.STOXXE gained 0.4%.
The bloc's banks .SX7E slid 1.5% to become the
worst-performing sector. ECB board member Fabio Panetta became
the latest to highlight risks from a strong currency, saying the
results of its stimulus measures are "not fully satisfactory
yet". Fiat Chrysler FCHA.MI jumped 9.0% and Peugeot maker PSA
PEUP.PA rose 2.2% after the carmakers restructured the terms
of their planned merger to conserve cash.