With the opening of another peak week for corporate financial disclosureChoicepokerEuropean stock markets rose on Monday as investor optimism about a possible rate cut by the European Central Bank rose in June.

By the close of trading in Paris, the Stoxx 600 index was up 0.Choicepoker.5%, thanks to a boost from insurance, energy and auto stocks. As the UK falls on a holiday, trading in the market is relatively light.

Interest rates and macro data still dominate the market. Philip Lane, chief economist of the ECB, told Spanish newspapers that recent eurozone data had made him more confident that inflation was returning to its 2 per cent target.

Samy Chaar, chief economist of the Lombard Odier, supports this view, saying that inflation in Europe has fallen significantly. The situation for the ECB is much easier, Chaar said in an interview. "it is clear that we are moving towards a rate cut".

Investors who study interest rate movements today keep a close eye on eurozone producer prices and a range of service purchasing managers' indices (PMI). France upgraded its comprehensive PMI in April, but manufacturing production fell even faster.

"strong results, a recovery in economic activity and the prospect of lower interest rates have boosted risk appetite in European stocks and the Stoxx 600 is expected to be well supported," said Ipek Ozkardesaya, a senior analyst at Credit Suisse.