European Equities Recover on Monday.
London, Monday, 10 October 2022
As gains in materials and industrial companies offset losses in utilities, European equities managed to recover from a sluggish start on Monday, with the regional STOXX 600 and the local DAX 40 adding around 0.1% and 0.7%, respectively.
However, continuing tensions between Russia and Ukraine as well as a dimming outlook for corporate profits and growth put investors on edge.
The Federal Reserve and the ECB in particular will probably continue their abrasive tightening in an effort to bring back price stability.
Francois Villeroy de Galhau, president of the Bank of France and an ECB member, was one of the most recent decision-makers to reiterate the necessity for ongoing interest rate increases to bring inflation back down to the 2% target.
(Report by: The Decision Maker – Finance editors)