European shares rose sharply today and had their best day in almost a year. They were helped by moderate comments from members of the US Central Bank (Fed) and the European Central Bank (ECB). The pan-European STOXX Europe 600 index added two percent to 452.48 points at the end.
The recovery was led by companies that provide services in the field of travel and leisure. Miners also claimed profits.
ECB Governing Council member François Villeroy de Galhau said that despite the conflict in the Middle East, inflation in the eurozone should reach the ECB’s target value of around two percent by the end of 2025. The Fed’s top officials then indicated on Monday that rising yields on long-term US government bonds, which directly affect the cost of financing households and businesses, could discourage the Fed from further raising interest rates.
European stocks hit six-month lows at the start of the month. By contrast, European and US bond yields have so far hit multi-year highs on bets that the biggest central banks will keep interest rates higher for longer. Although stocks have rebounded from these lows, the upcoming results season, economic statistics and oil price movements will be decisive for the development of their prices until the end of the year, Reuters wrote.
source: čtk
