European markets opened the week with a positive trend, as investors shifted their focus from last week’s negative sentiment to the upcoming interest rate decision by the Bank of England. The Stoxx 600 rose by 0.26% at 9:28 a.m. London time, with most major bourses and sectors in the green. Technology stocks were the standout performers, gaining 1.6%, while mining stocks experienced a slight decline, falling by 0.7%.
In France, the CAC 40 saw a 0.4% increase, rebounding from some of the losses incurred last week. This recovery comes despite investor concerns over the potential victory of the populist, far-right National Rally party, following President Emmanuel Macron’s unexpected decision to call for domestic parliamentary elections. Last week, the CAC 40 dropped by more than 6.2%, marking its most significant weekly loss since March 2022.
Investors are also anticipating the Bank of England’s policy rate decision scheduled for Thursday. The general expectation is that the Bank will maintain the current rate at 5.25%, with a majority of economists, as surveyed by Reuters, predicting a rate cut in August.
In Italy, inflation showed a slight increase in May, with the consumer price index (CPI) rising by 0.2% month-on-month, according to fresh data from ISTAT, the official statistics agency. On an annual basis, the CPI saw an increase of 0.8%.
Monday did not see any major corporate releases. In the Asia-Pacific region, markets presented a mixed picture as the area evaluated key economic data from China. Meanwhile, U.S. stock futures remained relatively unchanged as traders commenced a holiday-shortened week.
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