FTSE 100 up 0.22%; DAX up 0.23%; CAC 40 up 0.34% (Il Sole 24 Ore Radiocor) - Milan, 11 Jun - European shares opened slightly higher in cautious trade after yesterday's losses.

Political uncertainty continued to keep sentiment in check after the latest European Union elections showed a broader shift towards right-wing and far-right parties.

French president Emmanuel Macron announced that he will dissolve parliament and called for snap legislative elections later in June following his party lagged Marine Le Pen's far-right party in the EU vote. The first round of the general election will be held on June 30 and the second round on July 7.

Investors braced for a Federal Reserve policy decision tomorrow, with the US central bank expected to keep rates steady and offer more cues its future rate path.

A stronger-than-expected US jobs report released on Friday showed that hiring and wage growth picked up in May, rekindling concerns over US interest rates. The figures prompted investors to dial back hopes for an early Fed rate cut.

Last week the European Central Bank cut rates by 25 basis points for the first time since 2019 as widely expected by the markets, but did not commit to a particular path in the coming meetings. Despite a hike in inflation forecasts, investors still believe the ECB is likely to cut interest rates in September.

Meanwhile, European Central Bank president Christine Lagarde said in an interview published in several dailies todav that the ECB could keep interest rates unchanged after more than one meeting as it awaits for confirmation that inflation is headed towards the 2% target. "We've made the appropriate decision, but it doesn't mean interest rates are on a linear declining path. There might be periods where we hold rates again," she said.

Lagarde also said that the ECB has not finished the restrictive monetary policy cycle yet. If you look at real interest rates, we're still in restrictive territory and we have to continue as long as necessary to return inflation to 2%." In European stock market dealings most sectors were mixed, with retailers edging higher while miners slid.

At 0730 GMT the London FTSE 100 was up 0.22% at 8,246 points, the Frankfurt DAX was up 0.23% at 18,531 points, the Paris CAC 40 up 0.34% at 7,920 points, while in Milan the FTSE MIB rose 0.01% at 34,545 points, and in Madrid the IBEX 35 was down 0.16% at 11,339 points.

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(RADIOCOR) 11-06-24 09:48:48 (0215) 5 NNNN