EU shares recover after a long losing streak
On Wednesday, EU stock markets recoiled from a three-year low, because investors reversed shares recently beaten down in a seven-session sell-off.
On Tuesday, the SToxx Europe 600 index leaped to 314.86 or 1.8%, after hitting its lowest level since October 2013. It capped a losing streak powered by concerns regarding oil prices as well as a global growth slowdown.
The head of investment of Stockbroker Interactive Investor, Rebecca O’Keeffe said that major EU markets are trying to soar again, but with previous rebounds lacking conviction, falling abruptly after early gains, market sentiment is still fragile.
She added any early movement in global markets is a precursor to the afternoon’s major event - Janet Yellen’s first official public statement since increasing rates in December.
Meanwhile, German DAX 30 index surged to 9,036.91 or 1.7%, while French CAC 40 index soared to 4,069.79 or 1.8%. The UK’s FTSE 100 index traded at 5,685.54 – a 0.9% gain.
During Wednesday’s trade those banks, that were sold off toughly in previous sessions, rebounded, including the Stoxx Europe 600 Banks Index’s 3.8% rally. Shares of Deutsche Bank AG grew 11% amid news that the German bank considers purchasing back billions of euros of its bonds.