Europe open: Shares open higher on hopes of rate hike slowdown
European shares opened higher on Monday in a quiet start to the week with most Asian markets shut due to the Lunar New Year holiday.
The pan-European Stoxx 600 index was up 0.4% at 0823 GMT with all major bourses higher.
‘’Investor confidence has surged into the Lunar New Year after China lifted its drastic Covid restrictions and hopes have risen that the end to interest rate hikes may finally be in sight while there have been signs economies may prove more resilient in the downturn,” said Hargreaves Lansdown analyst Susannah Streeter.
“Relief that inflation is finally past its peak is palpable, and there has been rash of data showing central bank policies aimed at dampening down demand appear to be working.”
“Comments by Federal Reserve Governor Christopher Wallace were another salve for markets given that he indicated that falling prices combined with expected smaller rate increases, should do the trick of taming inflation, adding to hopes the end to the hiking cycle is close.”
Waller said he favours a 25 point rate rise next month when central bank gives its next interest rate policy update.
In equity news, shares in German flavoring and fragrance producer Symrise fell more than 7% after the company missed full-year earnings expectations.
Remy Cointreau shares gained after Citigroup upgraded the French liquor company’s stock to “buy” from “neutral” and raised its target price.
Reporting by Frank Prenesti for Sharecast.com