FTSE 100 up 0.16%; DAX up 0.65%; CAC 40 up 0.32% (Il Sole 24 Ore Radiocor) - Milan, 03 Jun - European shares started June on a positive note, extending last week's rally amid strong global markets as investors look ahead to the European Central Bank's latest interest rate decision on Thursday. The Stoxx 600 index was up 0.60% in early trade.

The region's central bank is considered almost certain to trim rates by a quarter point to 3.75% in the first rate cut since 2019. It would be the first time the ECB would have eased ahead of the US Federal Reserve.

Investors mulled a higher-than-expected eurozone inflation print released on Friday, but continued to weigh the prospects of a June rate cut after a slew of key policymakers said the ECB has room to lower interest rates as inflation slows. In May 2024, eurozone annual inflation is expected to stand at 2.6%, up from 2.4% the previous month, according to preliminary data from European Union statistical office Eurostat.

Traders also monitored manufacturing data from Spain, France and Germany out today.

In European stock market dealings technology shares tracked a global rally, led by chipmakers, after US giant Nvidia Corporation unveiled a new line of artificial intelligence chips amid rapidly growing demand from the booming industry.

Travel and leisure stocks were also among the biggest advancers.

At 0733 GMT, the FTSE 100 was up 0.16% at 8,288 points, the the Frankfurt DAX was up 0.65% at 18,603 points. The Paris CAC 40 was up 0.32% at 8,018 points, while in Milan the FTSE MIB was up 0.46% at 34,651 points and in Madrid the IBEX 35 was up 0.71% at 11,402 points.

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(RADIOCOR) 03-06-24 09:41:36 (0163) 5 NNNN