European shares rose on Monday (May 6), with investor optimism over interest rate cuts from major central banks back to the fore.
The pan-European STOXX 600 was up 0.3%. UK equities are closed due to a bank holiday.
Supporting sentiment, a media report showed European Central Bank Chief Economist Philip Lane noted a stronger case for a June rate cut on easing services inflation, while Friday’s (May 3) softer-than-expected U.S. jobs report renewed bets of the Federal Reserve most likely easing rates this year.
“The interest rate cut fantasy in America is not dead,” analyst Robert Halver told Reuters TV in Frankfurt, noting that the latest labour market figures suggest the U.S. economy is robust but not completely overheated.
European stocks have lost some of their shine from the start of the year due to a few uncertainties, including the health of European businesses, the Middle East tensions and the ECB’s policy outlook beyond June.
Energy was among the top sectoral gainers as oil prices rose after Saudi Arabia hiked June crude prices for most regions and as prospects of a Gaza ceasefire deal appeared slim.
(Reuters)
