Title: European shares climb after selloff with eyes on cenbank updates
May 25, 2022 03:45AM ET
European shares rose on Wednesday as positive German data boosted sentiment and investors awaited the central bank to announce monetary tightening amid growing fears of an economic slowdown.
By 0714 hrs. At 0714 GMT, the pan-European STOXX 600 index was up 0.8%, as shares in all sectors rose.
The index had fallen 1.1% in the previous session and had lost almost all of Monday's gains.
Stocks around the world recovered from the sell-off, with the Asian equity index up 0.4% and US equity futures strengthening.
In Europe, utility stocks were the main gainers. Energy company SSE Plc jumped 4.4 ter after reporting a 23% increase in annual profits.
Following PMI data released on Tuesday, which showed resilience in euro area business growth amid the economic slowdown, a survey on Wednesday showed that German consumer morale, which fell to a record low in May, is expected to pick up in June.
However, it warns that household spending is being constrained by inflation.
Separate German data showed that Europe's largest economy grew as expected in the first quarter.
After European Central Bank Governor Christine Lagarde struck a dovish tone earlier this week, investors will be watching the minutes of the US Federal Reserve's previous meeting on Wednesday to gauge the views of policymakers.
The value of banks benefiting from rising interest rates reached a new one-month high and was the biggest boost for the STOXX 600 index.