(Reuters) -European shares rose on Monday, extending the strong momentum from last week on optimism over a potential Ukraine peace deal, while investors turned their attention to upcoming U.S. inflation data and tariff negotiations later in the week.

The pan-European STOXX 600 index was up 0.3% by 0708 GMT, hovering near its strongest level since July 31.

Ukrainian President Volodymyr Zelenskiy won diplomatic backing from Europe and the NATO alliance ahead of a Russia-U.S. summit this week, where Kyiv fears Russian President Vladimir Putin and U.S. President Donald Trump may try to dictate terms for ending the 3-1/2-year war.

Trump, who is set to meet Putin in Alaska on Friday, said a potential deal would involve “some swapping of territories to the betterment of both (sides).”

Hopes o

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