FTSE 100 up 0.12%; DAX up 0.80%; CAC 40 up 0.30% (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 0.45% at mid-session.

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 digested manufacturing data from the region out today.

In May, the eurozone's purchasing managers' index for the manufacturing sector rose to a 14-month high of 47.3 from 45.7 in April, according to data released by S&P Global and Hamburg Commercial Bank. The manufacturing PMI output increased to a 14-month high of 49.3 from 47.3 in April.

Germany's purchasing managers' index for the manufacturing sector rose to a four-month high of 45.4 from 42.5 in April.

The manufacturing PMI output increased to a 13-month high of 48.9 from 45.4 in April.

Oil prices were little changed as investors digested a decision yesterday from the Organization of the Petroleum Exporting Countries and its allies, collectively known as OPEC+, to extend their official crude output cuts into 2025.

The decision came in line with forecasts.

US stock futures pointed to higher open in the first trading day in June.

At 1125 GMT, the FTSE 100 was up 0.12% at 8,285 points, the the Frankfurt DAX was up 0.80% at 18,630 points. The Paris CAC 40 was up 0.30% at 8,017 points, while in Milan the FTSE MIB was up 0.67% at 34,724 points and in Madrid the IBEX 35 was up 0.66% at 11,396 points.

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(RADIOCOR) 03-06-24 13:38:41 (0344) 5 NNNN