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  • Writer's pictureanalysiswatch

Title: European stocks eye weekly gains as defensives, tech shine

Jun 24, 2022 04:55AM ET

By: AnlysisWatch

European stocks rose on Friday, led by defensive and technology stocks, as investors shifted to safer assets amid growing concerns that tighter monetary policy and rising inflation could trigger a global recession.

The pan-European STOXX 600 index rose 1.1% after hitting a new low of 2022 in the previous session as weaker-than-expected eurozone economic data weighed on sentiment.

Still, the benchmark index was on track to post a small weekly gain, supported by the technology, personal and household goods and healthcare sectors.

Trading has remained volatile in recent days as investors fear that rising interest rates and soaring inflation will severely curb earnings and economic growth, sending commodity prices and government bond yields lower this week.

The Ifo Institute survey showed German business sentiment fell more than expected in June as rising energy prices and the threat of gas shortages unsettled companies in Europe's largest economy.

Earlier, data showed British consumers cut back on purchases in May amid fast-rising inflation, and a measure of their confidence sank to a record low this month.

Europe's retail index fell 1.3% to its lowest since March 2020 after German online fashion retailer Zalando issued a profit warning.

Zalando slumped 11.8% after the company cut its 2022 profit forecast, citing deteriorating macroeconomic conditions and consumer confidence.

Italy's Saipem fell 10.4% after the energy services group said it would have funding for less than a year if its plans to raise capital were not implemented

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