Stocks recorded strong gains over the Wednesday and Thursday sessions, helping the European “STOXX 600” index to rise for the seventh week in a row, amid indications of China’s re-opening of its economy and the decline in concerns about raising interest rates.
The Stoxx 600 rose 0.6 percent during the week, but closed down 0.2 percent on Friday, after rising 1.5 percent in the past two sessions.
Energy and technology stocks were among the biggest drivers of decline in the broader index, as they erased gains in the real estate and retail sectors.
Chinese officials this week softened their stance on tough COVID-19 restrictions that have affected global growth amid protests in the country.
Interest rate-sensitive technology stocks also took a hit as euro zone government bond yields rose in line with a move in US Treasury yields, after data showed US employers hired more workers than expected in November, and wages increased despite growing concerns. from slack.
Meanwhile, European data this week showed limited inflation and a decline in German retail sales and exports, allowing the European Central Bank to opt for a smaller interest rate hike.
However, ECB Vice President Luis de Guindos said Friday that the bank needs to focus on bringing inflation down to its average target of 2 percent, and thus continue to raise interest rates despite the recent slowdown in the pace of price rises.
Among individual stocks, French pharmaceutical company Sanofi fell 1.9% after it said that if it made an offer to buy biotech company Horizon Therapeutics, it would do so with cash.
Credit Suisse shares jumped 9.3% after 12 straight days of losses that pushed the stock to a record low.
The Swiss bank is looking to accelerate cost-cutting as revenue forecasts worsen.
#European #Stoxx #rose #seventh #week #row