European stocks close 2% higher as global markets look for a rally; rise in travel stocks

LONDON (AP) — European stocks rebounded on Friday as global markets looked to regain some ground after a rough week, with investors weighing the outlook for inflation and interest rates.

Without a trigger to alleviate recession anxiety, this may continue, but the panic button has yet to be pushed. And while highly speculative assets have tanked, we see little evidence of retail giving up equities.

emmanuel cau

Director of European Equity Strategy, Barclays

CNBC Pro Stock Picks & Investing Trends:

European leaders also face a race to secure alternative gas suppliers after Moscow announced sanctions on European subsidiaries of its majority state-owned corporation Gazprom. The move came after Ukraine’s state-owned grid operator suspended Russian flows into Europe through a key entry point.

On the data front, French inflation was confirmed at 5.4% y/y in April.

Euro zone industrial production shrank 1.8% in March from the previous month, a steeper drop than the 1% expected by a Dow Jones survey, as the war in Ukraine began to take its toll.

In terms of individual share price movement, Sweden’s Storskogen Group and Finnish state-owned energy company Fortum rose more than 11%.

Shares in Belgian pharmaceutical company UCB fell more than 13% after the US Food and Drug Administration said it cannot approve a key psoriasis drug.

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