Address

Precise Investors

Friday, December 2, 2022
Stocks & Shares

Banks and commodity stocks lead European shares higher

European shares

The STOXX 600 index rose 0.9%, after posting a loss of nearly 1% last week on concerns about economic growth amid rising prices and bets of monetary policy tightening by major central banks

European shares rose on Monday, helped by banks and commodity-linked stocks, as investors kept an eye out for U.S. inflation data and details from a European Central Bank meeting later this week.

The pan-European STOXX 600 index rose 0.9%, after posting a loss of nearly 1% last week on concerns about economic growth amid rising prices and bets of monetary policy tightening by major central banks.

Banks, which typically appreciate in a high interest rate environment, rose 1.7%.

Miners climbed 2.5% and luxury stocks also rallied as sentiment in the sectors, which derive significant demand from China, was lifted by authorities easing more curbs in Beijing and Shanghai.

Chinese economic markets are assuming that we’re going to see a significant improvement in economic data over the course of the next two or three months, said Michael Hewson, chief markets analyst at CMC Markets.

We’re seeing a modest rebound in Europe. Markets are trading in a little bit of a holding pattern ahead of some key central bank announcements and data releases, he said.

The ECB on Thursday is expected to confirm an end to bond buying this month and investors will be looking for clues on monetary policy.

Markets have ramped up bets on ECB interest rate rises this year after data last week showed euro zone inflation at a record high. A bigger, 50 basis-point hike at one of the bank’s policy meetings by October is being priced in.

Meanwhile, U.S. inflation data due on Friday is seen showing a rise month on month. The Federal Reserve has signalled rate hikes this month and the next, and strong inflation numbers could raise bets of an extended rate hike cycle.

Technology stocks gained 1.9% on upbeat global sentiment.

London’s commodities heavy FTSE 100 jumped 1% after an extended weekend.

Important:

The articles are for information purposes only and Precise Investors shall not be held responsible for any errors, omissions or inaccuracies within it. Any rules or regulations mentioned within the website are those relevant at the time of publication and may not be the most up-to-date.

Precise Investors does not endorse any of the products or services that appear on it or are linked to it and are not liable for any action that you may take as a result of the content of this website, or losses or damage you may incur doing so.

There is no obligation to purchase anything but, if you decide to do so, you are strongly advised to consult a professional adviser before making any investment decisions.

Please remember that investments of any type may rise or fall and past performance does not guarantee future performance in respect of income or capital growth; you may not get back the amount you invested.

Leave a Reply