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‘Jump’ 2.1% for the euro markets – The losses in the week have disappeared

European stocks closed higher at 2% in trading on Friday, wiping out the ground after heavy losses in recent days amid fears that the US and European central banks’ aggressive shift to tighter policies would hit global growth.

Markets have been rocking sharply in recent weeks as investors worry about the risk that large increases in inflation-related interest rates could hurt economic growth. The chairman of the US Federal Reserve, Jerome Powell, warned yesterday that he could not guarantee the so-called “smooth landing”, ie the reduction of inflation without the economy going into recession.

Investors, meanwhile, have continued to monitor the geopolitical implications of the war in Ukraine. Russia has issued new threats of retaliation against Finland following statements by its leaders that NATO membership applications should proceed “without delay”, with Prime Minister Recep Tayyip Erdogan saying on Friday that country does not view Finland and Sweden’s NATO prospects positively.

The accession of new countries to the North Atlantic Alliance requires the consent of the parliaments of all 30 member states, which means that a Turkish opposition could delay the full integration of the two northern European countries into NATO. Turkey could even veto the accession of a new member.

In this climate, the pan-European index Stoxx 600 added 2.14% to 433.48 points, with the travel and leisure sector jumping 4.7% and leading profits. Today’s gains pushed the index to positive ground on a weekly basis, after 4 consecutive five-day losses.

In the individual dashboard, the German DAX gained 2.1% to 14,027.93 points, the French CAC 40 rose 2.52% to 6,362.68 points, while the British FTSE 100 strengthened by 2.55% to 7,418.15 points.

In the periphery, the Italian FTSE MIB gained 2.05% 24,048.29 points, while the Spanish IBEX 35 increased by 1.68% to 8,338.10 points.

In the individual sharesthe Swedish Storskogen Group and the Finnish state-owned energy company Fortum rose more than 11% each.

The title of the Belgian pharmaceutical company UCB fell by more than 13%, after the US Food and Drug Administration stated that it could not approve a basic drug of the company for psoriasis.

In macro Today, French inflation stood at 5.4% for April on an annual basis.

Eurozone industrial production shrank by 1.8% in March compared to February, falling more than 1% as expected.

Source: Capital

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