European stocks rise ahead of central bank decisions on interest rates by Reuters

(Reuters) – European stocks rose at the start of an eventful week as investors awaited key inflation data in the United States and decisions of the world’s major central banks on interest rates, while a decline in metal prices led to a decline in mining company shares.

The European index rose 0.4 percent, remaining at its highest level in 22 months.

The index has increased 11.6 percent so far this year, supported mainly by bets on lowering interest rates, amid signs of a slowdown in inflation and the possibility of the region’s economy being exposed to a slight recession.

Goldman Sachs (NYSE:) raised its forecast for the European STOXX 600 index for the year to 500 points, implying gains of approximately six percent by the end of 2024 on the back of expectations for lower interest rates.

The US inflation reports and the decisions of the Federal Reserve (US Central Bank), the Bank of England and the European Central Bank that will be issued this week regarding interest rates are important in assessing the increased expectations of market participants regarding easing monetary policy globally.

The Polish index rose 0.3 percent after Prime Minister Mateusz Morawiecki lost a vote of confidence, paving the way for a coalition government of pro-European Union parties led by Donald Tusk to take power.

Mining company shares fell 0.9 percent, leading the sector’s losses on the index, with the prices of most metals declining compared to an increase.

(Prepared by Noha Zakaria for the Arabic Bulletin – Edited by Hassan Ammar)