European stocks aim higher despite recession worries

• (Closed): London’s FTSE 100 rises 1.0 percent, Frankfurt up 0.5 percent and Paris gains just 0.3 percent.
• Bitcoin reclaims $20,000 after falling to an 18-month low of $17,599 in weekend deals.
• (Close): FTSE 100 closes up 1.0 percent at 7,085.94 points; DAX 0.5 percent at 13,192.85;

European stock indexes climbed on Monday, as traders pushed despite recession worries and French political turmoil.

Bitcoin reclaimed $20,000 after falling to an 18-month low of $17,599 in weekend deals as risk-averse investors avoided the world’s most popular cryptocurrency.

European stock rallied 1.0 percent in midday deals on Monday, with sentiment boosted by news of a blockbuster takeover offer for publisher Euromoney.

Read More: European stocks climb at open

But the eurozone was more muted. Frankfurt stocks were up 0.5 percent and Paris gained just 0.3 percent, while oil prices languished on stubborn demand concerns.

Markets were rocked last week by a fierce sell-off after the US Federal Reserve’s sharp interest rate hike — the biggest in nearly 30 years — and a warning of more to come as inflation soars.

“Stability often comes before recovery and markets being more composed would suggest investors are no longer panicking,” said Russ Mould, investment director at broker AJ Bell.

Investors digested news that French President Emmanuel Macron and his allies faced political deadlock after losing their parliamentary majority in a stunning blow to the president and his reform plans.

Wall Street, shut on Monday for a US public holiday, had risen on Friday.

There is a sense among traders, however, that stock markets still have some way down to go before they find a bottom, with data suggesting economies are beginning to feel the pinch.

Read More: European stocks markets mainly dip at open

Cleveland Fed chief Loretta Mester fueled concern. She said the chance of a U.S. recession was rising and it would take years to get inflation down from four-decade highs to 2%.

She told CBS’s “Face The Nation” on Sunday that while she was not predicting a contraction, the Fed’s decision not to act sooner to fight rising prices was hurting the economy.

Analysts warned there was likely to be more pain ahead for traders as the Ukraine war drags on and uncertainty continues to reign.

Oil prices fell on Monday, extending Friday’s significant losses due to demand concerns created by the risk of a global recession.

However, US Energy Secretary Jennifer Granholm warned that prices could rise further if the European Union suspends imports from Russia in response to the Ukraine conflict.

Read More: European stocks surge despite major weekly loss in global stocks

Key figures at around 1115 GMT

London – FTSE 100: UP 1.0 percent at 7,085.94 points

Frankfurt – DAX: UP 0.5 percent at 13,192.85

Paris – CAC 40: UP 0.3 percent at 5,900.21

EURO STOXX 50: UP 0.6 percent at 3,457.35

Tokyo – Nikkei 225: DOWN 0.7 percent at 25,771.22 (close)

Hong Kong – Hang Seng Index: UP 0.4 percent at 21,163.91 (close)