European stocks rally after hit by US jobs report

European stocks rally after hit by US jobs report

European stocks had their best day in nearly two weeks on Monday, following declines in the previous week, as a strong US jobs report reignited bets on a new aggressive interest rate hike by the Federal Reserve. .

* The pan-European STOXX 600 index gained 0.8%, stabilizing after breaking two weeks of gains on Friday.

* Almost all sectors rose, with economically sensitive sectors such as financial services and autos leading the gains.

* Attention is focused on a key inflation data in the world’s largest economy due later in the week. World stocks spooked on Friday after data showed a big jump in US employment, denting hopes the Fed would relent in its series of hikes aimed at curbing rising inflation.

* After ending July with gains of over 7%, the STOXX 600 has struggled this month to prolong momentum due to concerns over gloomy economic data, rising geopolitical tension and fears that rising rates will lead the economy into a recession.

* Euro zone investor confidence was virtually unchanged in August from a month earlier, with an increase too small to ward off recession fears, a survey found.

* “The European Central Bank and markets underestimate the risk of the energy crisis triggering a recession, and the ECB will eventually accept this and reconsider its rate policy,” BlackRock strategists wrote in a note.

* Meanwhile, European oil and health stocks were left out of the broad rise, up 0.6% and flat, respectively.

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