European Stocks Close Higher on Interest Rate Cuts Expectations

European stock indices closed higher Monday for the third session in a row thanks to growing expectations from investors that the European Central Bank (ECB) will decide to lower interest rates this week. The stoxx600 index ended its trading up 0.3 percent, with Spanish and Italian stocks leading the gains, increasing by 0.7 percent and 0.5 percent, respectively. Energy stocks fell 0.7 percent, tracking the decline in oil prices, the shares of British drug manufacturer GSK fell 9.2 percent, and the shares of the troubled information technology company Atos fell 18 percent. Eurozone bond yields fell after data showed the continued weak performance of factory activity in the bloc and its contraction in the United States last May, which helped interest rate-sensitive sectors such as real estate, telecommunications, and utilities achieve the largest gains. All eyes are now on the European Central Bank's (ECB) interest rate decision next Thursday, as the ECB is expected to reduce borrowing costs by 25 basis po ints. Source: Qatar News Agency