© Archyde.com. A screen displays data for the German DAX index at the Frankfurt Stock Exchange on June 2, 2022. Photo by Archyde.com.
(Archyde.com) – The European stock market rose on Monday, supported by gains in banks and commodity-related shares, while investors awaited inflation data in the United States and details of the European Central Bank meeting later this week.
The European index ended the trading session up 0.9 percent, following recording a loss of one percent last week on concerns regarding economic growth amid price increases and bets on monetary policy tightening from major central banks.
Banking shares, which usually benefit from a high interest rate environment, rose 1.7 percent.
Mining shares jumped 2.5 percent, and luxury goods companies also rose amid optimism in sectors that derive strong demand from China following the authorities eased more restrictions in Beijing and Shanghai.
“Chinese markets assume that we will see significant improvements in economic data over the next two or three months,” said Michael Hesson, chief market analyst at CMC Markets.
On Thursday, the European Central Bank is expected to confirm an end to its bond purchases this month, and investors will be watching the meeting for any clues on monetary policy.
On the other hand, US inflation data on Friday is expected to show an increase on a monthly basis. The Federal Reserve has already indicated an increase in interest rates during its meetings this month and next month, and strong numbers may increase bets on an extension of the rate hike cycle.
European technology shares ended the session 1.9 percent higher, supported by improved global sentiment.
(Prepared by Wagdy Al-Alfi for the Arabic Bulletin)