European markets inch higher as investors reflect on economic uncertainty
The pan-European Stoxx 600 gained 0.3% by mid-morning after an uncertain start, with construction and material stocks shedding 2% while retail stocks added 1.7%.
The tepid trade for Europe on Monday came after a turbulent week of trading on the back of a flurry central bank action.
The U.S. Federal Reserve raised its benchmark funds rate by 75 basis points, its largest hike since 1994, before the Swiss National Bank surprised markets with its first hike since 2007 and the Bank of England implemented its fifth rate rise in a row.
Following an emergency meeting last Wednesday, the European Central Bank also announced that it plans to create a new tool to tackle the risk of euro zone fragmentation, a move aimed at assuaging fears of a fresh debt crisis for the common currency bloc.
Stateside, the S&P 500 and the Nasdaq Composite bounced on Friday as Wall Street attempted to find its footing following a brutal week of selling. But all the major averages ended the week in the negative, with the S&P 500 posting its worst week since 2020. Markets in the U.S. are closed on Monday for a holiday.
Overnight, shares in Asia-Pacific were mostly lower in Monday afternoon trade, as investors monitored market reaction to the release of China’s latest benchmark lending rates.
On the data front in Europe, German producer prices soared by 33.6% year-on-year in May, their largest increase on record, according to new official statistics published Monday.
Renault shares gained more than 6% on Monday after Jefferies upgraded the French automaker’s stock to “buy” from “hold.”
At the bottom of the index, Danish wool company Rockwool fell 6.7%
