Europe open: Shares up after dovish ECB comments on June cut

28th May 2024 08:16

(Sharecast News) - European shares opened higher on Tuesday as traders looked ahead to inflation data across the Atlantic later in the week while hopes of a June interest rate cut from the European Central Bank were buoyed by comments from two policymakers on Monday.

The pan-regional Stoxx 600 index was up 0.15% at 522.95, with all major bourses in the green. US and UK markets returned from public holidays.

"Thanks to this disinflationary process, inflation is converging to our 2% target in a sustained way, and the time is thus ripe in June to ease the monetary policy stance and start cutting rates," ECB Governing Council member Olli Rehn said in a speech.

The bank's chief economist Philip Lane told the Financial Times: "Barring major surprises, at this point in time there is enough in what we see to remove the top level of restriction."

There was little corporate news to drive trade. Investment firm Intermediate Capital Group gained after it more than doubled profits in the year ended 31 March due to a huge increase in performance fee income, while assets under management rose by nearly a quarter.

German flavour and fragrance maker Symrise was up almost 3% after Deutsche Bank raised its rating to 'buy' from 'hold'.

Reporting by Frank Prenesti for Sharecast.com