Euro stocks up amid optimistic outlook
European stocks edged higher on Monday, with investors believing the notion of a strong economic recovery in the region after the previous week’s European Central Bank’s policy decision.
By 4 AM ET (0800 GMT), Germany’s Dax was trading 0.7% higher, while the French CAC 40 went up 0.5%, and the U.K.’s FTSE 100 added 0.5%.
The ECB decided in the previous week that it was in a position to cut back its emergency bond purchases in the fourth quarter. At the same time, the bank hiked its growth and inflation projections for this year and beyond as the Eurozone’s economic recovery recovered quicker than expected.
However, ECB President Christine Legarde emphasized that the move was not the beginning of tapering, hinting that the central bank’s policy will remain accommodative for some time to come.
Investors now focus on Chief Economist Philip Lane’s comments to look for further clues on what the central bank is planning.