European stock markets posted solid gains on Monday, driven by a wave of optimism following the release of inflation data from Italy and France.
The positive sentiment was broad-based, with investors welcoming signs that price growth is slowing in two of the eurozone’s largest economies.
8%, while Germany’s DAX in Frankfurt advanced by more than 1%.
The Italian benchmark index climbed 0.8%, while Germany’s DAX in Frankfurt advanced by more than 1%.
The rally reflects a shift in market focus toward the potential for a more accommodative monetary policy stance as inflationary pressures appear to be receding.
The data releases come at a critical juncture for the European Central Bank, which has been navigating a complex economic landscape.
Recent reports have highlighted a slowdown in EU economic growth alongside persistent inflation, raising concerns about stagflation risks.