European market ends higher, but recession fears limit gains

European shares rose on Monday and the oil and gas sector marked its best session in two months, but negative euro zone investor sentiment limited gains ahead of the start of the European Central Bank’s (ECB) plan. ) to start raising interest rates this month.

The pan-European STOXX 600 index closed up 0.54% at 409.31 points after falling last week on concerns of a potential global economic slowdown. Trading volumes were lower on Monday due to a US holiday.

London-listed oil giants BP Plc and Shell and France’s TotalEnergies jumped between 4.4% and 4.6%. They provided the biggest boost to the STOXX 600 after supply fears fueled by lower OPEC output, tensions in Libya and sanctions against Russia pushed up oil prices.

Falls in the real estate, auto and technology sectors limited gains.

A Sentix poll released on Monday showed eurozone investor confidence this month fell to its lowest level since May 2020, pointing to an “inevitable” recession in the 19-nation currency bloc.

Meanwhile, producer prices in the region rose less than expected, according to separate data. This came after consumer inflation hit a record high and strengthened the case for an interest rate hike by the ECB.

Investors will now be on the lookout for the release of the minutes of the ECB’s last monetary policy meeting on Thursday.

• In London, the Financial Times index advanced 0.89%, to 7,232.65 points;
• In Frankfurt, the DAX index fell 0.31% to 12,773.38 points;
• In Paris, the CAC-40 index gained 0.40% to 5,954.65 points;
• In Milan, the Ftse/Mib index had a devaluation of 0.05%, to 21,343.93 points;
• In Madrid, the Ibex-35 index registered a drop of 0.17%, to 8,161.80 points;
• In Lisbon, the PSI20 index rose by 0.04%, to 6,054.21 points.