Title: European shares tick higher on bank, auto boost

Jun 01, 2022 03:45AM ET

By: AnalysisWatch

European stocks opened Wednesday with modest gains, driven by gains in banking and auto stocks, but sentiment remained under control as a slew of gloomy data sparked fears of a slowdown in growth.

The pan-European STOXX 600 index opened June on a positive note, rising 0.3% by 03:16 AM ET after closing 0.7% lower on Tuesday as record high inflation stoked fears of aggressive central bank measures. It lost 1.6% in May.

Deutsche Bank economists now expect the European Central Bank to raise interest rates by 50 basis points in September as rising prices depress economic growth.

Data showed German retail sales fell more than expected in April as consumers felt the pressure of higher prices, while another survey showed British companies expect almost no growth in the next three months.

Shares in carmakers rose nearly 1%, while the biggest boost to the STOXX 600 index came from banks, which rose 0.6%.

Among individual stocks, British footwear brand Dr. Martens rose 19.0% after forecasting higher annual sales growth thanks to price increases made in response to soaring inflation and stronger sales of its shoes and boots.

Deutsche Bank's asset manager, DWS, slumped 6.9% after its chief executive announced he would step down next week as the company faced accusations of misleading investors about "green" investments.