European shares rose tentatively in early trade Monday, still
feeling the effects of last week's hints at further stimulus from
Mario Draghi.
In early trade, the Stoxx Europe 600 was 0.1% higher, while
Paris's CAC gained 0.2% and London's FTSE 100 was broadly
unchanged. Frankfurt's DAX edged a little less than 0.1% higher
ahead of the release of the German Ifo business climate index for
November, due at 0900 GMT.
The climbs build on last week's rally that followed the European
Central Bank president's speech in Frankfurt, in which he said it
was necessary to bring eurozone inflation up to the ECB's target
"without delay."
Barclays economists however, said Friday's speech was "one of
his most candid to date."
"Although [Mr. Draghi] maintained that longer-term indicators on
the whole remain within a range that the ECB considers consistent
with price stability, his language is increasingly reflecting the
growing concern that they soon could also fall below this range,"
they said.
Asset classes considered to be risky, such as southern European
government bonds, remained in strong demand Monday, having also
rallied on Friday. Spain's 10-year government bond yield, for
example, fell below 2% on Monday for the first time in the euro
era. Yields fall as bond prices rise.
Also bolstering global sentiment was China's central bank
surprise cut in interest rates. Monday, Hong Kong's Hang Seng Index
closed almost 2% higher.
Brent crude was trading 0.2% lower at $80.25 per barrel. Gold
was 0.1% higher on the day at $1,198.50 a troy ounce.
Write to Josie Cox at josie.cox@wsj.com
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