And the Bloomberg news agency reported that the main Stoxx 600 index of European shares rose by 0.6 percent at the end of trading in the London Stock Exchange, to continue its rise for the fourth consecutive day, the longest continuous period of rise since last March. Shares of consumer goods and technology companies were among the gainers, while shares of telecom and utilities companies lagged.
Bloomberg indicated that European stocks are suffering from pressure this year, in light of the growing fears of central banks’ tendency to tighten monetary policy, slowing economic growth, rising prices and the Russian war once morest Ukraine.
At the same time, buyers’ activity in the market increased over the past week, as falling stock prices and continued improvement in earnings expectations increased investor appetite for shares.
For his part, Ulrich Urban, head of research and planning for multiple assets at Berenberg, said that reopening the Chinese economy would ease economic concerns, by easing bottlenecks in supply chains and calming commodity prices.
He added that European stocks might continue to rise if volatility continued to decline, and the inflation rate suddenly dropped.
This comes as data from the European Commission showed today, Monday, that confidence in the euro zone economy rose slightly during the month of May, contrary to expectations, in a decline in fears of price increases for the second month in a row.
The economic confidence index rose to 105.0 in May, compared to 104.9 in April. Analysts polled by Bloomberg News had expected a slight decline in confidence, reaching its lowest level in 14 months.
While the confidence of industrial companies declined, that of services and construction companies improved. Consumer confidence also improved, with their expectations for prices falling over the next 12 months.
The confidence sub-index rose significantly in Spain, followed by France and Italy. While the indicator has not changed for Germany.
Confidence among retailers declined slightly during the current month, as the index fell to negative 0.4 compared to negative 3.9 last April. The employment expectations index rose by 0.3 points to 112.9 in this May.
European stocks can continue to rise if volatility continues to decline, and the inflation rate drops suddenly. Chinese ed will lead to a recession
