At actions european recorded their best day in nearly two weeks on Monday, after falling last week when a strong jobs in the US reignited bets on another aggressive rate hike by the Federal Reserve.
The pan-European STOXX 600 index rose 0.8%.
Nearly all sectors were up this session, with economically sensitive financial services and automotive leading the gains.
The focus now turns to inflation data from the world’s largest economy, due out on Wednesday.
Global stock markets were spooked on Friday after data showed strong U.S. job creation in July, dampening hopes the Fed could wind down its string of rate hikes aimed at reining in the economy. inflation.
From the European agenda, investor confidence in euro zone remained essentially unchanged in August from July, with an increase too small to stave off recession fears, a survey showed.
“We view recession in Europe as likely, even in the absence of major rate hikes, as broad economic stress from an energy crisis… The European Central Bank and markets underestimate the risk of the energy crisis causing a recession, and the ECB will eventually accept this and rethink its interest rate trajectory,” BlackRock strategists wrote in a note.
The world’s biggest asset manager is under-allocated in European equities as the energy price shock brought on by the Ukraine war puts the region at risk of stagflation, strategists added.
Source: Moneytimes
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