Market Analysis

European stocks rose on Monday, driven by renewed investor confidence in global interest rate cuts and positive earnings reports. The pan-European STOXX 600 index edged up 0.2% by 0720 GMT, with the energy sector leading gains as oil prices increased following Saudi Arabia's decision to raise June crude prices and amid uncertain prospects for a Gaza ceasefire.

UK markets were closed for a bank holiday, but elsewhere, Spanish defence and technology company Indra saw its shares surge 8.5% after reporting a 40% increase in first-quarter net profit, buoyed by strong orders amid heightened global tensions.

Meanwhile, French IT firm Atos climbed 4% after unveiling four investor offers for debt restructuring and capital injection, despite its debt burden. However, Dutch postal company PostNL faced a setback, dropping 3.5% after reporting a larger-than-expected first-quarter loss. German logistics giant Deutsche Post AG also declined by nearly 4%.

European Central Bank Chief Economist Philip Lane's comments on the potential for a rate cut in June, citing easing services inflation, were noted in media reports. Additionally, Friday's weaker-than-expected U.S. jobs report reinforced expectations that the Federal Reserve may ease rates later this year.

Paraphrasing text from "Reuters" all rights reserved by the original author.