European stocks rise as central banks pledge easy monetary policy

FILE PHOTO: The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, May 21, 2021. REUTERS/Staff

(Reuters) – European stocks rose to near all-time highs on Wednesday as a host of central bank policymakers pledged to keep monetary policy loose despite recent signs of an uptick in inflation.

The pan-European STOXX 600 index rose 0.3% by 0711 GMT, with Germany’s DAX up 0.4%, France’s CAC 40 rising 0.3% and UK’s FTSE 100 adding 0.2%.

British retailer Marks & Spencer jumped 5.5% despite reporting an 88% slump in full-year profit.

French food company Danone slipped 1.6% after Berenberg downgraded the stock to “sell”, citing the hard-to-fix low-growth nature of most of its categories.

Global stock markets took comfort as U.S. Federal Reserve officials reaffirmed a dovish monetary policy stance, while European Central Bank board member Fabio Panetta said the bank should not reduce the pace of asset purchases from next month.

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