European shares close higher, led by cars and sectors related to the economic cycle

© Archyde.com. The Frankfurt Stock Exchange from the inside on March 28, 2022. Archyde.com

(Archyde.com) – European shares rose on Monday, led by automakers and cyclical sectors, as sentiment improved on hopes of a peace deal between Russia and Ukraine, while oil companies came under pressure from a sharp drop in crude prices.

The European index closed up 0.1 percent, regarding 8 percent away from its highest level ever recorded in early January.

European automakers and cyclical sectors such as utilities and construction led the gains.

A sell-off in the region’s bond market has shown no signs of slowing and traders expect up to four rate hikes from the European Central Bank within a year.

Oil stocks fell 2.1 percent, recording their worst session in nearly four weeks, as crude prices fell more than $9 a barrel.

Ratings agency Standard & Poor’s Global lowered its forecast for euro zone growth for this year to 3.3 percent from 4.4 percent in its previous forecast, saying higher energy prices due to the war in Ukraine would hurt household purchasing power.

(Prepared by Wagdy Al-Alfi for the Arabic Bulletin)

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