By Sagarika Jaisinghani and Shreyashi Sanyal
Jun 25 (.) – European stocks held just below all-time highs on Friday, with a boost from the financial and materials sectors, while Credit Suisse stocks rose after a . report that the lender was considering a possible merger with UBS.
* Shares in the Swiss bank – hit by financial scandals – rose 1.9% as the report said Credit Suisse management was under pressure to come up with a restructuring plan. Shares of UBS rose 0.2%.
* The European benchmark STOXX 600 gained 0.1%, ending the week 1% higher after strong swings due to concerns that higher inflation will affect fixed income assets and lead central banks to raise interest rates sooner than expected.
* The US Federal Reserve has been sending mixed messages this week about how long it would let inflation continue to accelerate, but a weaker-than-expected reading of personal consumption expenditure (PCE) data on Friday eased concerns about a sudden decrease in stimuli.
* “What has been remarkable is how indices globally have shrugged off the Fed’s apparent shift in outlook (which has retreated carefully to some extent this week), and have presumably resumed their upward march. following the promise of economic growth as the world returns to normal, “said Chris Beauchamp, IG’s chief markets analyst.
* The STOXX 600 fell sharply from all-time highs last week, after the unexpectedly aggressive stance of Fed officials shook global financial markets.
* The European Central Bank has reiterated that it is too early to adjust monetary policy in Europe, while on Thursday the Bank of England adopted a dovish tone in its statement, even though it acknowledged that inflation would exceed its 2% target.
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* London’s FTSE 100 also rose on Friday.
* The European banking index rose 0.6% and ended the week with gains of around 2%, as investors returned to economically sensitive sectors. Other shares denominated by appreciation, including mining and energy, were also among the main beneficiaries of the week.
(Reported by Sagarika Jaisinghani and Shreyashi Sanyal in Bengaluru. Edited in Spanish by Marion Giraldo)