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Europe stocks rise amid hopes of monetary policy easing

written by Bella Palmer

The DAX index in Germany added 0.2%, the CAC 40 in France gained 0.1%, while the FTSE 100 in the U.K. advanced 0.2%

European stock markets rose Monday, starting the new week on a positive note amid growing hopes of monetary policy easing globally in the near future.

At 07:10 GMT, the DAX index in Germany added 0.2%, the CAC 40 in France gained 0.1%, while the FTSE 100 in the U.K. advanced 0.2%.

The main European indices have started with small gains Monday, trading near record levels, at the start of a week that includes the release of the latest regional economic activity data.

A slow euro area recovery seems to be underway after six consecutive quarters of stagnant or negative growth.

The European Central Bank (ECB) is widely expected to cut interest rates in June, as officials look to ease monetary policy to aid the region’s recovery.

In the US, the Federal Reserve is due to publish the minutes of its April 30-May 1 meeting this week, when Fed Chair Jerome Powell indicated that rates are likely to remain higher for longer amid ongoing inflation pressures.

Moreover, several Fed officials are also due to speak during the week, including Atlanta Fed President Raphael Bostic, Governors Michael Barr, Christopher Waller and Philip Jefferson, Cleveland Fed President Loretta Mester, New York Fed President John Williams and Richmond Fed President Thomas Barkin.

In Asia, Beijing rolled out a series of supportive measures for the economy- specifically the property market last week, as it moved to shore up a sluggish economic recovery.

China also kept its benchmark loan prime rate at record lows on Monday.

In the corporate sector, the earnings season is gradually drawing to an end, but there are a few late reporters, including Ryanair.

The budget airline’s stock declined 0.9% despite reporting a 34% increase in full-year profits, despite seeing a sharp increase in fuel costs, after raising its fares by more than a fifth.

Europe's biggest airline by passenger numbers said it could carry up to 200 million people this year if the planes it has ordered from Boeing arrive on schedule.

That said, Ryanair said it was only "cautiously optimistic" that fares in the peak of the summer would be "flat to modestly ahead" of last year, and it decided against giving profit forecasts for the current year, saying that was "heavily dependent" upon avoiding adverse events like the wars in Ukraine and the Middle East, extensive air traffic control disruptions or further Boeing delivery delays.


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