FTSE up 0.43%; DAX up 0.79%; CAC 40 up 0.53% (Il Sole 24 Ore Radiocor) - Milan, 06 Jun - European shares were higher at mid-session, extending yesterday's gains as investors looked ahead to an expected European Central Bank rate cut today. The Stoxx 600 index was up 0.69%.

The central bank is widely expected to trim rates by 0.25 percentage points 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.

The region's stock markets tracked overnight gains on Wall Street, where US stocks climbed to record highs.

Growing optimism over lower interest rates across the globe helped support investor sentiment, with weak US labor market data ramping up an interest cut by the Fed might be on the cards earlier than feared. The report came a day after the Labor Department said job openings had fallen in April to the fewest in more than three years.

Strong labor market readings have stoked concern the Federal Reserve may have to keep interest rate cuts higher for longer as it strives to bring inflation down. The focus now shifts to key payrolls data on Friday.

Back in Europe, in April 2024 compared with the previous month, the seasonally adjusted retail trade volume decreased by 0.5% compared to the previous month while calendar adjusted retail sales were steady compared to the year earlier, data from European Union statistical office Eurostat showed.

For the EU as a whole, retail trade volume fell by 0.6% month on month and by 0.1% year on year. In March 2024 compared with the previous month, retail trade volume grew by 0.7% in the eurozone and by 0.6% in the EU.

US stock futures pointed to a muted open after both the S&P 500 and Nasdaq Composite rallied yesterday.

At 1050 GMT the London FTSE 100 was up 0.43% at 8,282 points, the Frankfurt DAX added 0.79% at 18,717 points, the Paris CAC 40 rose 0.53% at 8,048 points, while in Milan the FTSE MIB gained 0.55% at 34,697 points, and in Madrid the IBEX 35 was up 0.58% at 11,418 points.

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(RADIOCOR) 06-06-24 13:19:37 (0346) 5 NNNN