BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - French stocks advanced on Tuesday after European Central Bank President Mario Draghi said that the central bank still has room to cut interest rates and measures to cushion the side effect from low interest rates.
Speaking at the ECB Forum on Central Banking in Sintra, Portugal, Draghi said, 'Further cuts in policy interest rates and mitigating measures to contain any side effects remain part of our tools.' 'And the APP [asset purchase program] still has considerable headroom.'
Focus now shifts to the monetary policy meetings of the Federal Reserve, Bank of England and Bank of Japan due this week as trade tensions threaten global growth.
The benchmark CAC 40 was up 52 points or 0.97 percent at 5,442 after rising 0.4 percent on Monday.
Automaker Renault was rising 1 percent and Peugeot was moving up 0.2 percent after industry data showed EU car registrations gained 0.1 percent year-on-year in May, reversing a 0.4 percent fall in April.
Banks were coming under selling pressure on expectations that lower interest rates my compress their margins. Societe Generale declined 0.9 percent, Credit Agricole lost 1.4 percent and BNP Paribas shed 0.6 percent.
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