European shares opened higher on Tuesday and were on track to secure solid quarterly gains, as investors braced for a heavy slate of economic data and a series of high-profile speeches from global central bank officials later in the day.
The pan-European STOXX 600 index rose 0.4% in early trade, positioning it for a 9.7% gain for the quarter.
Germany’s DAX was up 0.8%. London’s FTSE 100 and France’s CAC 40 was up 0.2% and 0.3% respectively. Italy’s FTSE MIB gained 0.4%.
On a quarterly basis, Italian equities were on track to outperform regional benchmarks, fueled by substantial gains in the banking sector following a wave of fresh mergers and acquisitions (M&A) activity over the last three months.
In contrast, London’s FTSE 100 lagged behind its continental counterparts. Investors remained cautious about taking large positions in UK equities due to persistent concerns over a ballooning fiscal deficit and ongoing efforts by policymakers to revive sluggish economic growth.
European markets have broadly trailed Wall Street and Asian benchmarks this quarter, primarily due to a lower concentration of major technology stocks.
The heavy weight of technology and artificial intelligence valuations helped push U.S. and Asian indexes to record highs earlier this year, even during heightened geopolitical friction between the United States and Iran.
Monetary policy also takes center stage as the European Central Bank’s annual forum in Sintra, Portugal, continues.
Markets will be parsing remarks from ECB Chief Economist Philip Lane, alongside Executive Board members Isabel Schnabel and Frank Elderson, for clues on the future path of Eurozone interest rates.
The event will culminate in a highly anticipated policy panel featuring newly appointed Federal Reserve Chair Kevin Warsh – making his first major international appearance – and Bank of England Governor Andrew Bailey
Among individual stocks, Maersk shares rose 3% after hiking its annual earnings forecasts.
Aino Health jumped 50% after recieving a take over offer.
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