US economy

European shares rise on energy boost, rate-cut hopes

(Reuters) – European shares climbed on Monday, with investor optimism over interest rate cuts globally back to the fore, while Spanish defence and technology firm Indra jumped following a strong first-quarter profit.

The pan-European was up 0.2%, as of 0720 GMT, with energy leading sectoral gains as oil prices rose after Saudi Arabia hiked June crude prices for most regions and as prospects of a Gaza ceasefire deal appeared slim.

UK equities were closed for trading due to a bank holiday.

Shares of Indra jumped 8.5% after the company posted a 40% rise in first-quarter net profit, supported by strong orders as global tensions spur demand for air defences.

Debt-laden French IT company Atos advanced 4% after announcing four distinct investor offers for debt restructuring and cash infusion.

Dutch postal firm PostNL dropped 3.5% after a wider-than-expected first-quarter loss. Germany’s logistics giant Deutsche Post AG (ETR:) shed nearly 4%.

A media report showed European Central Bank Chief Economist Philip Lane noted a stronger case for June rate cut on easing services inflation, while Friday’s softer-than-expected U.S. jobs report renewed bets that the Federal Reserve would most likely ease rates this year.


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