They completed Monday’s trading with strong gains after last week’s heavy losses, with the French stock market still worried about the results of the parliamentary elections that ended yesterday, Sunday.
The pan-European STOXX 600 index rose 1% to 407.14 points with banks (+ 3.3%) leading the way after last week’s slump.
The STOXX 600 lost a total of 4.6% last week, slipping to a 12-month low in a global sell-off fueled by concerns about aggressive interest rate hikes by central banks in the US and Europe.
European Central Bank President Christine Lagarde reiterated today that the central bank plans to double its interest rates this summer, with the former at 25 basis points.
The French CAC 40 gained 0.6% and closed at 5,920.09 points, recording the smallest rise among European markets after the failure of the central coalition “Together” (Ensemble) of French President Emanuel Macron to secure an absolute majority in new National Assembly. This is expected to lead France to a period of governmental and wider political instability.
The German DAX gained 1.1% to 13,265.60 points, while the British FTSE 100 gained 1.5% to 7,121.81 points.
In the region, the Italian FTSE MIB rose 1%, while the Spanish IBEX 35 jumped 1.7%.
At the end of the day, wholesale prices in Germany jumped by a whopping 33.3% year-on-year in May, the largest level ever recorded since reunification, indicating that inflationary pressures are far from being reduced.
In business developments, the French carmaker Renault jumped 9.7% after Jefferies announced that it had upgraded its shareholding recommendation to “Buy”.
Valneva’s title also rallied 29.3% in the wake of the agreement for the investment of 90.5 million euros by the American giant Pfizer for an 8.1% share in the French vaccine company.