European stocks rose on Monday as traders weighed recent data showing persistently high rates of US inflation and looked ahead to corporate earnings picking up this week.
The regional Stoxx 600 index closed up 0.7 per cent after declining 1 per cent over the course of last week, with all sectors apart from real estate in positive territory. London’s FTSE 100 climbed 0.9 per cent, Germany’s Dax was up 0.3 per cent and France’s Cac 40 rose 0.8 per cent.
Across the Atlantic, where markets are closed on Monday for Martin Luther King Jr. day, investors have been assessing the implications of rising wages, declining rates of unemployment and record rates of inflation, with some questioning whether US Federal Reserve officials will tighten monetary policy faster than planned.