FX.co ★ CAC 40 Gains As Investors Ponder Rate Path

French stocks posted modest gains on Monday, while European sovereign bond yields edged higher as investors digested recent remarks from Federal Reserve and European Central Bank officials.

The benchmark CAC 40 rose by 22 points, or 0.3%, reaching 8,189 after a 0.3% decline the previous Friday.

In a Bloomberg Adria interview, ECB Governing Council member Martins Kazaks suggested that June might be an appropriate time to begin lowering borrowing costs, although he stressed that future policy moves will be contingent on forthcoming data. Kazaks emphasized that any rate reductions should be "cautious" and "gradual," warning against a hasty approach.

Similarly, ECB Executive Board member Isabel Schnabel advised against consecutive interest rate cuts in June and July. "Based on current data, a rate cut in July does not seem warranted as there is a risk of easing prematurely," she told the Nikkei newspaper.

On the other side of the Atlantic, U.S. Fed Governor Michelle Bowman noted on Friday that there had been no significant progress in reducing inflation this year. She asserted her willingness to increase rates if inflationary pressures persist or worsen.