Europe open: Shares gain ahead of central bank rate decisions

European shares opened higher on Tuesday as investors looked ahead to several central bank rate decisions this week, including from the Bank of England.

The pan-regional Stoxx was up 0.58% to 514.72 in early deals. The CAC 40 in France rose 0.54% to 7,612, while Germany’s DAX index gained 0.56% to 18,166 and Britain’s FTSE 100 0.66% to 8,186

Central banks in Norway and the UK are expected to hold rates steady at policy meetings this week, while the Swiss National Bank is forecast to cut by 25 basis points.

Investors will also be watching for the final print of the eurozone’s May consumer price index, with the annual figure expected to be confirmed at 2.6%, an increase from 2.4% in the previous month.

Earlier on Tuesday the Reserve Bank of Australia kept held rates at 4.35% but warned of upside risks from persistent inflation.

In equity news, hotel and restaurant owner Whitbread gained as it remained confident on its full-year outlook despite flat first-quarter sales growth.

Equipment rental group Ashtead fell as profits came in shy of expectations, as the company pointed to a further moderation of growth in the coming year.

French supermarket giant Carrefour slumped 9% to the bottom of the Stoxx on a report that a government department had recommended a €200m fine over franchise contracts.

Reporting by Frank Prenesti for Sharecast.com