European markets ascend continuing positive global trend; Stoxx 600 up 1%

European markets  Early trading saw the pan-European Stoxx 600 index rise 1.2 percent, with oil and gas equities leading the way up 2.9 percent as all major sectors and bourses joined the green.

Sinch, a Swedish cloud computing company, increased by more than 9 percent to lead early trading. After the British insurer cancelled a £50 million ($59.6 million) share buyback and lowered its profit guidance, Direct Line shares, which are at the bottom of the European blue chip index, fell more than 13 percent.

The generally strong start in Europe coincides with a more upbeat worldwide mood. Hong Kong’s Hang Seng increased by more than 2 percent on Monday in Asia-Pacific, and following a successful week, U.S. stock index futures opened the day slightly higher.

Read Also: Asian Stock Market went down after US inflation Fuels Rate Hike Fears

Trading speculation that the Federal Reserve will be less aggressive at its next meeting led to Friday’s relief surge. The central bank is on track to raise interest rates by 75 basis points at its meeting later this month, rather than the higher, full-percentage-point hike that some analysts had predicted, according to a report published on Sunday in The Wall Street Journal.

Fears of a recession have dominated trading sentiment in recent weeks as market investors worry that the Fed’s forceful action in an effort to control inflation that has been decades high may finally tip the economy into one.

Fresh inflation figures released last week revealed that consumer prices increased by 9.1% in June, which was a larger increase than anticipated and the highest level since 1981. Trading then began to bet that the Fed will increase rates at its meeting at the end of July by a full percentage point as a result.

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After GSK shareholders accepted the demerger of its consumer health-care business, Haleon shares started trading on the Main Market of the London Stock Exchange on Monday as an independent, listed company.

The Heartz Team. 

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