{"id":47240,"date":"2024-05-20T17:10:10","date_gmt":"2024-05-20T17:10:10","guid":{"rendered":"https:\/\/www.pantheregroup.com\/2024\/05\/20\/european-stocks-close-broadly-higher-after-cautious-session-3\/"},"modified":"2024-05-20T17:10:10","modified_gmt":"2024-05-20T17:10:10","slug":"european-stocks-close-broadly-higher-after-cautious-session-3","status":"publish","type":"post","link":"https:\/\/www.pantheregroup.com\/2024\/05\/20\/european-stocks-close-broadly-higher-after-cautious-session-3\/","title":{"rendered":"European Stocks Close Broadly Higher After Cautious Session"},"content":{"rendered":"
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European stocks closed a bit higher on Monday, edging up slightly after turning in a somewhat weak performance in the previous session. <\/p>\n

Expectations that the stimulus measures announced by China last week will help revive the property sector in the world’s second largest economy<\/span>, and optimism about interest rate cuts in the coming months helped underpin sentiment in European markets.<\/p>\n

European sovereign bond yields edged up after ECB Governing Council member Martins Kazaks indicated in a Bloomberg Adria interview that June seems the right moment to start lowering borrowing costs, but future moves will be largely determined by incoming data.<\/p>\n

Kazaks emphasized that any reduction in rates should be “cautious” and “gradual,” and that the process should not be rushed.<\/p>\n

Separately, ECB executive board member Isabel Schnabel also warned against back-to-back interest-rate cuts in June and July.<\/p>\n

“Based on current data, a rate cut in July does not seem warranted as there is a risk of easing prematurely,” she told the Nikkei newspaper.<\/p>\n

Bank of England’s Deputy Governor Ben Broadbent said the interest rate could be cut some time over the summer.<\/p>\n

The outgoing deputy governor said if things continue to evolve as expected, then the policy will have to become less restrictive at some time. <\/p>\n

Elsewhere, U.S. Fed Governor Michelle Bowman said on Friday that she has seen no progress in inflation this year and remains willing to hike rates should progress stall or reverse.<\/p>\n

The pan European Stoxx 600 ended higher by 0.8%. The U.K.’s FTSE 100 edged up 0.05%, Germany’s DAX and France’s CAC 40 both ended up by 0.35%, while Switzerland’s SMI climbed 0.76%, extending gains to a third straight session.<\/p>\n

Among other markets<\/span> in Europe, Austria, Belgium, Finland, Greece, Netherlands, Poland, Portugal, Spain, Sweden and Turkiye closed higher, while Russie ended weak.<\/p>\n

In the UK market, Rolls-Royce Holdings rallied nearly 4.5%. Fresnillo, Weir Group, Entain and Airtel Africa gained 2.4 to 4%.<\/p>\n

Ashtead Group, JD Sports Fashion, Melrose Industries, RightMove, ICG, Kingfisher, IMI, Lloyds Banking Group, Antofagasta, Centrica, Smiths Group, Admiral Group and IHG ended higher by 1 to 2%.<\/p>\n

Shares of Keywords Studios soared about 61% after the company said that it is in talks with European private equity company EQT Group over a possible cash offer worth 2,550 pence a share.<\/p>\n

EasyJet, Burberry Group, Ocado Group, Sage Group, Prudential, Beazley, BT Group, Frasers Group, Imperial Brands, Natwest Group and Reckitt Benckiser lost 1 to 3.2%.<\/p>\n

In the German market, Covestro gained more than 2%. MTU Aero Engines, SAP, Infineon, Deutsche Telekom, Commerzbank, BASF and Henkel also posted notable gains.<\/p>\n

Siemens Energy drifted down more than 2.5%. Porsche, Puma, Mercdes-Benz, BMW and Volkswagen lost 1 to 2%.<\/p>\n

In the French market, Teleperformance climbed about 3%. Societe Generale, Safran, Airbus Group, Schneider Electric, Thales and Kering gained 1 to 2.3%.<\/p>\n

Carrefour, STMicroElectronics, Engie, Renault and Pernod Ricard closed weak. <\/p>\n<\/p>\n

Market Analysis<\/p>\n<\/div>\n