Europe: Stocks extend recovery at open

EUROPEAN stock markets rose at the open on Monday (Jun 27), building on strong gains at the end of last week, as traders bet on less aggressive rate tightening by central banks.

London's benchmark FTSE 100 index climbed 0.4 per cent to 7,240.86 points.

In the eurozone, Frankfurt's DAX index won 0.9 per cent to 13,233.34 points and the Paris CAC 40 advanced 0.8 per cent to 6,120.28.

Global stock markets are recovering ground as investors believe central banks could decide to raise interest rates by more modest amounts than previously thought.

The US Federal Reserve and its peers are hiking borrowing costs in an attempt to cool inflation, which has soared around the world to the highest levels in decades.

However, such action has increased the prospect of a global recession, causing economists to think that future rate hikes could be less steep than in recent months. AFP