European shares weakened following strong weekly loss for global stocks

• European shares begin Monday’s session on a subdued note.
• Last week saw worst weekly loss for global stocks since March 2020’s pandemic-induced turmoil.
• Italian and Greek bond yields rise amid uncertainty about higher Eurozone interest rates.

European equities markets began Monday’s session on a subdued tone, following the worst weekly loss for global stocks since March 2020’s pandemic-induced turmoil.

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As traders awaited economic data and a congressional hearing by US Federal Reserve chair Jay Powell, which might underline the US central bank’s resolve to tackle inflation with rate hikes, the European Stoxx 600 share index rose 0.1%.

Following a volatile session in Asia and with US markets closed for vacation, London’s FTSE 100 and Germany’s Xetra Dax climbed by 0.3% and 0.2%, respectively.

The FTSE All-World index, a measure of developing and developed market shares, declined by 5.7% last week, the biggest since March 2020. In addition, US equities experienced their largest weekly decline since the beginning of the coronavirus epidemic.

Meanwhile, investors anticipate additional evidence that the profitability of publicly traded corporations is under pressure due to increasing consumer and producer costs and decreased consumer spending. The S&P 500 concluded last week around 25% below its January peak.

On the debt markets on Monday, the yields on Italian and Greek bonds increased while their prices fell, reflecting uncertainty about how higher Eurozone interest rates may impact the bloc’s financially weakest states.

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The yield on Greece’s 10-year bonds increased by 0.15 percentage points to 4.05 percent, according to data from Tradeweb. The corresponding Italian yield increased 3.63 percent by 0.06 percentage points.