Home ›› 25 Dec 2022 ›› Stock
Europe’s STOXX 600 was subdued on Friday in thin pre-holiday trading after a turbulent week where hopes of an improving economic outlook overshadowed fears of recession and hawkish central banks.
The STOXX 600 (.STOXX) was flat by close and bound for a 0.6% weekly advance. With the early gains, the index looked set to recoup a small part of last week’s staggering 3.3% loss, which was driven by heightened concerns of a recession after the U.S. Federal Reserve and the European Central Bank signalled a prolonged rate-hike cycle.
US data on Thursday, showing a tight labour market and economic resilience, exacerbated those worries and dented expectations of a so-called “Santa rally” before the year-end.
Still, upbeat earnings from Nike (NKE.N) and FedEx Corp (FDX.N) this week and improving consumer confidence in the United States and euro zone have offered some hope that the economic downturn caused by sharp interest rate hikes may not be as bad as feared.
Morale among Italian businesses and consumers rose in December, data showed on Friday, although the manufacturing sector was more downbeat.
“Investors have been weighing up some better-than-expected corporate earnings this week against macroeconomic concerns about rising interest rates and a global slowdown,” said Victoria Scholar, head of investment at Interactive Investor.
Thin trading volumes around the holidays could also be exacerbating market moves, Scholar added.
