The European stock market closed higher on Wednesday, supported by gains in defensive stocks, but fears regarding a looming energy crisis and a bleak outlook for growth capped the gains.
The European Stoxx 600 index ended the trading session up 0.2 percent, rebounding from three consecutive sessions of losses, but it is still hovering near its lowest level in a month.
Gains led the defensive sectors, including health care, while mining stocks fell 1.8 percent, to come in the forefront of the European losers.
Markets are assessing the risks from rising interest rates, bleak economic data, high inflation and a possible recession.
“The continuation of sharp increases in European gas prices and the chances that they will remain very high means that the euro zone is likely to suffer a deeper recession than previously expected,” said Jack Allen Reynolds, chief economist for Europe at Capital Economics.
The market is awaiting the minutes of the previous meeting of the Monetary Policy Committee of the European Central Bank, which will be published tomorrow, Thursday, and is likely to be a hawkish tone.
(Archyde.com)
