Breaking News
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% Upgrade now

European shares bounce back from U.S. jobs report hammering

Stock Markets Aug 08, 2022 17:07
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
2/2 © Reuters. FILE PHOTO: The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, August 3, 2022. REUTERS/Staff 2/2
 
ENRY
+4.48%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

By Shreyashi Sanyal and Anisha Sircar

(Reuters) - European shares logged their best day in nearly two weeks on Monday after clocking falls in the previous week when a strong U.S. jobs report rekindled bets of another aggressive rate hike by the Federal Reserve.

The pan-European STOXX 600 index rose 0.8%, steadying after snapping two weeks of gains on Friday.

Nearly all sectors were up, with economically sensitive sectors including financial services and autos leading gains.

Focus shifts to a key inflation data from the world's biggest economy later in the week. Global stock markets were spooked on Friday after data showed a large increase in U.S. employment, denting hopes that the Fed might let up in its series of rate hikes aimed at taming surging inflation.

Economic surprises: https://fingfx.thomsonreuters.com/gfx/mkt/lgvdwylxjpo/Pasted%20image%201659946938721.png

After ending July with gains of over 7%, the STOXX 600 has struggled this month to extend the momentum on worries over dour economic data, rising geopolitical tensions and fears that higher interest rates could tip the economy into a recession.

Investor morale in the euro zone was essentially unchanged in August from July, with a rise too little to stave off recession fears, a survey showed.

"We see recession in Europe as likely even absent big rate hikes as broad economic stress from an energy crisis bite...The European Central Bank and markets underappreciate the risk of the energy crunch causing a recession, and the ECB will eventually accept this and rethink its rate path," wrote strategists at BlackRock (NYSE:BLK) in a note.

The world's biggest asset manager is underweight on European equities as the energy price shock stoked by the Ukraine war puts the region at risk of stagflation, they added.

Meanwhile, European oil and healthcare stocks missed out the broader rally, up 0.6% and flat, respectively.

Crude prices held near multi-month lows on demand worries, while healthcare stocks were pressured by the U.S. Senate on Sunday passing a bill intended to lower drug prices, among other things. [O/R]

Danish brewer Carlsberg (CSE:CARLa) rose 1.5% after lifting its profit growth outlook for 2022, saying it has been able to resume Ukraine operations and log a strong performance in Europe and Asia.

Siemens Energy fell 1.0%, blaming a 200 million euro ($204 million) charge related to winding down its Russian business for a wider net loss in 2022.

Italian stocks lagged their European peers after global ratings agency Moody's cut the country's outlook to "negative" from "stable" on Friday.

European shares bounce back from U.S. jobs report hammering
 

Related Articles

Why AMD Shares Fell Sharply This Week
Why AMD Shares Fell Sharply This Week By Benzinga - Oct 01, 2022

Advanced Micro Devices, Inc. (NASDAQ: NASDAQ:AMD) shares traded lower by 6.67% to $63.36 this week amid overall market weakness and a rise in the 10-year treasury yield, which is...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email