LONDON – European stocks rose on Tuesday, continuing the recovery seen earlier in the week.
The pan-European Stoxx 600 added 1% by mid-morning, with chemical stocks up 2.1% to make a profit as almost all sectors and major exchanges entered positive territory. Utilities fell 0.6%.
Positive trade for Europe comes when global markets appear to be making a comeback after last week’s turbulent week.
Asia-Pacific markets were mostly lively overnight, and Bitcoin continued its recent recovery, while US stock futures also rose (US markets closed on Monday for the June 10 holiday).
The recovery from positive sentiment comes after the turbulence in the global market, as investors assess the prospect of a more aggressive increase in Federal Reserve interest rates and growing chances of recession.
There was a wave of central bank action last week, with the Fed raising its base rate on funds by 75 basis points, its biggest increase since 1994. The Bank of England also implemented its fifth consecutive rate hike, surprising the Swiss National Bank markets by 50 basis points, and the European Central Bank also announced plans to create a new instrument to tackle the risk of eurozone fragmentation.
In terms of individual stock price movements, Leonardo rose 6.2% at the start of trading after the Italian aerospace and defense company announced that its US e-DRS had agreed to take over Israel’s RADA Electronic Industries.
Finnish manufacturer Wartsila added 6.8% after announcing that it is building the world’s largest hybrid ship with Swedish shipping company Stena.
At the bottom of the index, the Swedish real estate company SBB fell 6%.
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