Europe: Stocks climb at open

EUROPE'S main stock markets opened higher on Wednesday (Jun 1), after choppy trade the previous day as investors mulled the outlook for soaring inflation.

The British capital's benchmark FTSE 100 index of major companies gained 0.2 per cent to 7,622.14 points compared with the closing level on Tuesday.

London will remain shut on Thursday and Friday for a long bank holiday weekend to mark Queen Elizabeth II's Platinum Jubilee.

In initial eurozone trade on Wednesday, Frankfurt's DAX index added 0.6 per cent to 14,469.73 points.

The Paris CAC 40 gained 0.5 per cent in value to stand at 6,498.94.

Investors were brought down to earth with a bump on Tuesday with figures showing eurozone inflation hit a record high in May on rocketing energy costs.

The news puts extra pressure on the European Central Bank to act quicker to rein in prices by hiking interest rates along with the Federal Reserve.

There is a fear that acting too late could mean policymakers will have to announce harder, more painful increases later on.

"The spectre of inflation continues to loom large," noted Richard Hunter, head of markets at Interactive Investor. AFP