European shares climb on energy surge, buoyed by prospects of rate cuts

European stocks rose on Monday, driven by renewed investor confidence in global interest rate cuts and positive earnings reports. The pan-European STOXX 600 index edged up 0.2% by 0720 GMT, with the energy sector leading gains as oil prices increased following Saudi Arabia's decision to raise June crude prices and amid uncertain prospects for a Gaza ceasefire.

UK markets were closed for a bank holiday, but elsewhere, Spanish defence and technology company Indra saw its shares surge 8.5% after reporting a 40% increase in first-quarter net profit, buoyed by strong orders amid heightened global tensions.

Meanwhile, French IT firm Atos climbed 4% after unveiling four investor offers for debt restructuring and capital injection, despite its debt burden. However, Dutch postal company PostNL faced a setback, dropping 3.5% after reporting a larger-than-expected first-quarter loss. German logistics giant Deutsche Post AG also declined by nearly 4%.

European Central Bank Chief Economist Philip Lane's comments on the potential for a rate cut in June, citing easing services inflation, were noted in media reports. Additionally, Friday's weaker-than-expected U.S. jobs report reinforced expectations that the Federal Reserve may ease rates later this year.

Paraphrasing text from "Reuters" all rights reserved by the original author.