European Shares Get A Boost As The Fear Of Economic Slowdown Fades
During Wednesday's trading session, the shares of European companies climbed higher after the US data faded the fears of a global economic slowdown. For now, the investors are now looking forward to hearing the comments of central bankers about the next policy direction.
STOXX 600, which is a European stock index, was last seen trading 0.5% higher after the data from the US showed positive signs. According to the data, consumer confidence in the USA increased along with a healthy increase in the new orders for US capital goods.
Both these economic measures are good for the US economy and thus have also boosted the stock markets around the world, including those of Europe.
STOXX 600 Boosted By Healthcare & Industrial Sector
If we look at the STOXX 600 index, the sectors which contributed to most of the upside were the industrial and healthcare. One particular company known as Roche Holding (RO) jumped 1.6% after the US regulator's decision to decline the Eylea drug of Regeneron.
Looking ahead, investors are closely watching the discussion happening at the Sintra, where Fed's Jerome Powell and Christine Lagarde (ECB President) are present. Furthermore, Kazuo Ueda (the new governor of BOJ) is also present at the panel discussion, which means there's a lot of action to unfold.
Carrefour (CARR), which is a prominent supermarket chain from France, also jumped 3.1% recently. This comes after Morgan Stanley classified the company's stock as overweight based on its proprietary parameters.
For now, the global stocks are lifted by the upbeat data from the USA which reveals that there's more room for economic growth despite all of the recent rate hikes. But in our opinion, the economic recovery is very fragile and the world is yet to see the true effects of rate hikes! Some of these effects include slow growth, slow demand, and high unemployment rate.