German stocks eked out modest gains on Monday as investors welcomed stimulus measures in China to support the country’s property sector and pondered the outlook for rates.
The benchmark DAX was up 52 points, or 0.3 percent, at 18,757 after declining 0.2 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.
Market Analysis
DAX Edges Higher In Cautious Trade After Comments From ECB Officials
2024-05-20 08:46:34
