LONDON, April 29 (Reuters) - European shares rose on Monday,
boosted by the formation of a new, growth-focused government in
Italy and by expectations of fresh stimulus from global central
Italy's FTSE MIB index was the best performer in
the region, rising 2.2 percent as investors welcomed the end of
a two-month political impasse. New Prime Minister Enrico Letta
promised to push for a change to Europe's focus on austerity and
The pan-European FTSEurofirst 300 index rose 0.5
percent to 1,202.61 points, helped by rising expectations of
further monetary support from the U.S. Federal Reserve and the
European Central Bank later this week after lower-than-expected
inflation figures from the U.S. and Germany.
However, with the FTSEurofirst 300 is up 4.8 percent since
April 18, some investors believe that any new central bank
action is already in the price and scope for more gains is
"It's a short term bounce we're seeing right now but after
that we should prepare for some weakness given the structural
problems that we are facing," said Wouter Sturkenboom,
investment strategist at Russel Investments.
He expected a 10-15 percent pullback in European shares over
the next few months.