European Stocks Climb As Global Markets Look For Rebound
May 13, 2022
European stocks advanced on Friday as global markets looked to regain some ground after a bruising week, with investors assessing the outlook for inflation and interest rates.
The pan-European Stoxx 600 added 0.6% in early trade, with banks climbing 1.5% to lead gains as most sectors and major bourses entered positive territory. Autos slid 0.5%.
European markets fell on Thursday as investors remained concerned about slowing growth, interest rate hikes and red-hot April inflation data from the United States, which sparked concerns that a path of aggressive interest rate hiking lies ahead.
Global stocks have endured a rollercoaster week but look set to regain some ground on Friday. Shares in Asia-Pacific advanced by mid-afternoon with Japan’s Nikkei 225 leading the way on a 2.6% climb.
Meanwhile, U.S. stock futures were higher in early premarket trade as investors hope the S&P 500 can avoid sliding into bear market territory, with the index closing down more than 18% from its all-time high on Thursday, just 2% shy of an official bear market.
The tech-heavy Nasdaq is already in a bear market, closing Thursday down more than 29% from its all-time high, while the Dow Jones Industrial Average has fallen for six consecutive trading sessions.
The Stoxx 600 in Europe began Friday’s session down 13% since the beginning of the year.
European leaders are also facing a race to secure alternative gas suppliers after Moscow announced sanctions on European subsidiaries of its majority state-owned corporation Gazprom. The move came after Ukraine’s state-owned grid operator suspended Russian flows into Europe through a key entry point.
On the data front, French and Spanish inflation figures for April and euro area industrial production readings for March are due on Friday morning.
