Content and data provided by various third parties and Fidelity - Terms of Use
Print.Print
Small font size A Larger text size A Largest text size A

European shares jump on Powell's speech, China relief

BY Reuters | ECONOMIC | 12/01/22 03:19 AM EST

(For a Reuters live blog on U.S., UK and European stock markets, click or type LIVE/ in a news window)

Dec 1 (Reuters) - European shares scaled over three-month highs on Thursday, cheered by U.S. Federal Reserve Chair Jerome Powell signalling smaller interest rate hikes ahead, and China softening its tone on strict COVID-19 rules.

The pan-European STOXX 600 index rose 0.9% by 0810 GMT, after rising 6.8% in November, its best month since July.

Technology and industrial stocks were among the biggest boost in early trade.

Energy stocks fell capping gains for the broader index as oil prices dipped amid uncertainty ahead of Sunday's OPEC+ meeting.

Investors seemed to look past data that showed German retail sales fell more-than-expected in October as inflation had consumers holding back on non-essential purchases at the start of the fourth quarter.

Lender HSBC (HSBC) slipped 1.9%. On Wednesday it announced a possible sale of its New Zealand business and plans to close 114 branches in Britain, in the latest retrenchment by the bank as it strives to improve returns amid criticism from a top investor. (Reporting by Susan Mathew in Bengaluru; Editing by Nivedita Bhattacharjee)

More Fixed Income News

All Fixed Income News

In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

© 1998 – 2014 FMR LLC.

All rights reserved.
fir_news_article