LONDON – European stocks were mixed Monday after a tumultuous trading week last week.
The pan-European Stoxx 600 hovered fractionally below the flatline in early trading, with construction and materials inventories losing 2.2% while retail shares rose 0.5%.
Muted trading for Europe on Monday came after a turbulent trading week following a stormy move from the central bank.
The US Federal Reserve raised its benchmark fund rate by 75 basis points, the largest increase since 1994, before the Swiss National Bank surprised markets with its first hike since 2007 and the Bank of England implemented its fifth rate hike in a row.
After an emergency meeting last Wednesday, the European Central Bank also announced that it plans to create a new tool to address the risk of fragmentation of the eurozone, a measure that lifts fears of a new debt crisis for the single currency bloc. must take away.
In the United States, the S&P 500 and Nasdaq Composite bounced on Friday as Wall Street tried to gain a foothold after a brutal week of selling. But all major averages ended the week negative, with the S&P 500 posting its worst week since 2020. US markets are closed on Mondays for a holiday.
Overnight, Asia-Pacific stocks were largely lower in trading Monday afternoon as investors watched market reactions to the release of China’s latest benchmark lending rates.
On the data front in Europe, German producer prices rose 33.6% year-on-year in May, the largest increase ever, according to new official statistics released Monday.
Renault shares gained more than 5% to lead the Stoxx 600 on Monday after Jefferies upgraded the French automaker’s shares to “buy” from “hold”.
At the bottom of the index, Danish wool company Rockwool fell 6.7%.