Banks and commodity stocks drive European Stocks as markets await ECB meeting
Banks and commodity-linked stocks helped European shares increase on Monday, as investors awaited U.S. inflation data and details from a European Central Bank meeting later this week.
Banks and commodity-linked stocks helped European shares rise on Monday, as investors waited for U.S. inflation data and details from a European Central Bank meeting later this week. The pan-European STOXX 600 index gained 0.9 percent after losing nearly 1% the previous week due to concerns about economic growth amid rising prices and bets on major central banks tightening monetary policy.
“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.”
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 substantial demand from China, was elevated by authorities easing more curbs in Beijing and Shanghai.
British Prime Minister Boris Johnson will face a confidence vote later on Monday, the chairman of the 1922 Committee Graham Brady has told the lawmakers, post the documentation of a report which alcohol-fuelled parties when Britain was under strict COVID lockdowns.