European markets climb, following positive global sentiment; Stoxx 600 up 1%

The pan-European Stoxx 600 index added 1% by mid-morning, with chemicals stocks climbing 2.1% to lead gains as almost all sectors and major bourses nudged into positive territory. Utilities slipped 0.6%.

The positive trade for Europe comes as global markets appear to be staging a comeback rally after a tumultuous week last week.

Asia-Pacific markets were mostly buoyant overnight and bitcoin continued a recent rebound while U.S. stock futures also rose (U.S. markets were closed on Monday for the Juneteenth holiday).

The rebound in positive sentiment comes after global market turbulence as investors assessed the prospect of more aggressive Federal Reserve rate hikes and rising chances of a recession.

Last week, there was a flurry of central bank action, with the Fed raising its benchmark funds rate by 75 basis points, its largest hike since 1994. The Bank of England also implemented its fifth rate rise in a row, the Swiss National Bank surprised markets with a 50 basis point hike, and the European Central Bank also announced that it plans to create a new tool to tackle the risk of euro zone fragmentation.

In terms of individual share price movement, Leonardo climbed 6.2% in early trade after the Italian aerospace and defense company announced that its U.S. electronics unit DRS had agreed a takeover of Israel’s RADA Electronic Industries.

Finnish manufacturer Wartsila added 6.8% after announcing that alongside Swedish shipping line company Stena, it is building the world’s largest hybrid ship.

At the bottom of the index, Swedish real estate company SBB slipped 6%.