French stocks eked out modest gains on Monday while European sovereign bond yields edged up as investors reacted to the latest comments from Fed and ECB officials.
The benchmark CAC 40 was up 22 points, or 0.3 percent, at 8,189 after falling 0.3 percent on Friday.
ECB Governing Council member Martins Kazaks indicated in a Bloomberg Adria interview that June seems the right moment to start lowering borrowing costs, but future moves will be largely determined by incoming data.
He emphasized that any reduction in rates should be “cautious” and “gradual,” and that the process should not be rushed.
Separately, ECB executive board member Isabel Schnabel also warned against back-to-back interest-rate cuts in June and July.
“Based on current data, a rate cut in July does not seem warranted as there is a risk of easing prematurely,” she told the Nikkei newspaper.
Elsewhere, U.S. Fed Governor Michelle Bowman said on Friday that she has seen no progress in inflation this year and remains willing to hike rates should progress stall or reverse.
Market Analysis
CAC 40 Gains As Investors Ponder Rate Path
2024-05-20 08:56:52
