GSK tumbles as U.S. ruling allows Zantac lawsuits to proceed
Financials, technology stocks boost market gains
STOXX 600 up 0.6, near oneweek high

June 3 Reuters European shares rose on Monday, tracking gains in Asian equities, while investors braced for a key interest rate decision from the European Central Bank ECB later this week.

The panEuropean STOXX 600 was up 0.6 by 0832 GMT, extending gains for the third straight session.

The sentiment was upbeat as China39;s factory activity grew at the fastest pace in about two years in May, while a softer U.S. inflation print on Friday continued to spur hopes of interest rate cuts this year by the Federal Reserve.

All eyes are now on the ECB39;s interest rate decision on Thursday, where the central bank is expected to cut borrowing costs by 25 basis points bps from its recordhigh levels, according to a Reuters poll.

The market expects a 25bp rate cut on Thursday, however, its what comes next that matters more for financial markets, Kathleen Brooks, research director at XTB, said in a note.

We do not expect ECB President Christine Lagarde to confirm further rate cuts, however, she may say that the bar is high for a rate cut in July, and instead suggest that a September cut could be possible, but only if inflation starts to retreat in the coming months.

Market participants anticipate rate cuts owing to the encouraging signs of easing inflation in the region. However, the May inflation reading ticking higher has cast…