By Shreyashi Sanyal and Sruthi Shankar
(Reuters) – European stocks jumped on Friday, led by gains in the energy and retail sectors after the Federal Reserve said there will be no immediate moves to tighten monetary policy, easing fears of accelerating inflation in USA.
* The pan-European STOXX 600 Index gained 1.1%, led by crude and gas-related stocks and retail.
* Despite everything, the benchmark closed the week with a fall of 0.5%, amid an increase in the prices of raw materials and signs of an increase in inflation in the United States that raised fears of a rise in interest rates earlier than expected by the Fed.
* However, confidence improved on the Fed’s guarantees on its monetary policy, while also indicating that it will not immediately reduce its cash injections, which have boosted the financial markets.
* Although price rises are less of a problem in the euro zone, investors have been following Wall Street for much of the week. Nonetheless, analysts believe that Europe remains an attractive choice for global investors.
* Sebastian Raedler, Investment Strategist at BofA Global Research, wrote: “We see a further improvement of 5% for the STOXX 600 and 10% for cyclicals versus defensive, value versus growth and financials, which benefit. both from accelerating growth and rising bond yields. “
* Minutes from the last monetary policy meeting of the European Central Bank showed that authorities set the stage for a decision on June 10 on the future of their emergency bond purchases when they met in April, although they did not get to discuss their next move.
* Among individual stocks, Italian Banco BPM gained 3% after Deutsche Bank upgraded its recommendation to “buy”, while French food group Danone dropped 0.3% after Goldman Sachs downgraded its shares to ” sale”.
(Edited in Spanish by Carlos Serrano)