Source: Sharecast
Investor sentiment was further boosted by a stronger-than-expected reading for US consumer confidence.
The pan-regional Stoxx 600 index was up 0.33% at 552.32 with all major bourses higher. France’s CAC 40 drifted lower by 0.02% to 7,826.79 despite data showing that consumer prices rose less than anticipated in May, signalling subdued inflationary pressure, but Germany’s DAX climbed 0.83% to 24,226.49.
“UK and US investors returned from their respective long weekends with a spring in their step thanks to the abrupt decision to pause higher tariffs on the EU," said Chris Beauchamp, chief market analyst at IG.
"The half-life of each tariff increase continues to get shorter and shorter, and traders continue to fade the move. While the Dax pushes on to a new record high, the FTSE 100 finds itself around 100 points away from its own peak.”
German 10-year bund yields were 2 basis points lower at 2.54%, while the US Long Bond's yield was again to be seen below 5%.
In European economic news, economic sentiment across Europe rose, according to data from the European Commission, with its sentiment indicator (ESI) improving in both the EU, up 0.6 points to 95.2, and the eurozone, which gained 1 point to 94.8.
Consumer confidence in Germany rose to its highest mark in seven months as economic expectations reached a two-year high despite overall sentiment remaining "extremely low", according to a survey by NIQ and the Nuremberg Institute for Market Decisions (NIM).
The forward-looking consumer climate indicator forecast an increase of just 0.9 points to -19.9 for June. This was the third straight improvement and marked the highest level since November.
But while the index remains firmly higher than the record lows of -42.8 seen in late-2022, it still remains well below the long-term average.