European shares opened the week higher as investors eyed a no-confidence vote in UK Prime Minister Boris Johnson on Monday along with US inflation data and European Central Bank minutes later in the week week.
The pan-European Stoxx 600 index was up 0.6% in early deals with all major regional bourses higher.
Johnson, found guilty of breaching his own Covid lockdown rules, will face a vote tonight after at least 54 parliamentary members of the ruling Conservative Party submitted letters of no confidence.
Investors are keeping close watch on any signals that could extend the US Federal Reserve’s interest rate rise timetable.
“With the latest inflation number due on Friday, the potential is high for the number to put the cat among the pigeons once more. A rise of 0.7% is expected for May, which would leave core inflation at around 6%. However, anything higher would again prompt expectations that the Fed’s current policy would need to extend beyond the rate hikes already expected in June and July,” said Interactive Investor head of markets Richard Hunter.
In equity news, Melrose Industries share rose after the company said it had sold its Ergotron business to funds managed by The Sterling Group for $650m (£520m) in cash.
