(For a Reuters live blog on U.S., UK and European stock

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Sept 17 (Reuters) - European stocks rose on Tuesday,

supported by financials, as markets drew closer to an expected

start to the U.S. Federal Reserve's monetary easing cycle that

could see policymakers deliver an outsized rate reduction.

The continent-wide STOXX 600 index was up 0.6% at

518.16 points, as of 0713 GMT, while Britain's FTSE 100

outperformed its European peers with a 0.7% jump.

All sectors were trading higher, led by a nearly 1% gain in

financials and a 0.8% jump in banking shares.

Investors will be squarely focused on Fed's decision on

Wednesday, with markets now pricing in a 67% chance that the

U.S. central bank could ease rates by 50 basis points.

In economic data, markets will closely monitor German

sentiment survey at 0900 GMT that is expected to show a slight

deterioration in September and U.S. retail sales, due at 1230

GMT, are forecast to have contracted in August on a monthly

basis.

European Central Bank's supervisor Claudia Buch and board

members Elizabeth McCaul and Frank Elderson will be speaking

later in the day.

Among stocks, Kingfisher was the top gainer, rising

6.6% after the European home improvement retailer raised the

bottom-end of its profit outlook for the full year.

Shares of Barry Callebaut climbed 6.2% after

Barclays raised the stock's rating to "overweight" from

"underweight".