European stocks surge despite major weekly loss in global stocks

• London’s FTSE 100 and Germany’s Xetra Dax climbed by 0.9% and 0.4%, respectively.
• Last week, global share prices experienced worst weekly fall since March 2020’s pandemic-induced turmoil.

European stocks markets rose slightly on Monday, following the worst weekly fall for global stocks since March 2020’s pandemic-induced turmoil.

As traders expected economic data and a congressional appearance by US Federal Reserve chair Jay Powell, which may underscore the US central bank’s resolve to fight inflation with rate hikes, the regional Stoxx 600 stock index rose 0.4%.

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Following a volatile session in Asia and with US markets closed for vacation, London’s FTSE 100 and Germany’s Xetra Dax climbed by 0.9% and 0.4%, respectively. Nonetheless, an index of European stocks construction companies declined 2% after Dublin-based global building materials company Kingspan reported a large fall in order volumes and a “deteriorate” of “mood” in its markets.

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.

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As the Bank of England and the Swiss National Bank followed the Federal Reserve in hiking interest rates last week in a bid to combat skyrocketing inflation, the prognosis for global markets grew increasingly dismal, which contributed to the drop in share prices.