The pan-European Stoxx 600 provisionally closed up by 0.9%, with banks leading the gains by increasing by 3.3% as most industries and significant bourses finished in the green. It follows a volatile trading week brought on by a flurry of central bank activity.
Before the Swiss National Bank shocked markets with its first increase since 2007 and the Bank of England enacted its sixth consecutive rate increase, the U.S. Federal Reserve increased its benchmark funds rate by 75 basis points, the largest increase since 1994.
The European Central Bank also disclosed intentions to develop a new instrument to address the risk of eurozone fragmentation following an emergency meeting last Wednesday, all in an effort to allay concerns about the recurrence of the single currency bloc’s debt crisis.
Following the loss of President Emmanuel Macron’s absolute majority in the country’s parliamentary election, which may have jeopardised his economic plan, French stocks edged up but behind other significant European bourses. The CAC 40 index for France finished 0.6% higher.
The S&P 500 had its worst week since 2020, and all the main averages in the United States closed the week in the red. Due to a public holiday, markets in the United States are closed on Monday.
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