European stocks rose on the 30th, hitting a month-high high.China takes measures against new coronavirusa reliefHowever, it pushed up the risk orientation in anticipation of economic recovery.
The STOXX Europe 600 index is up 0.6%. 4 business days continuous growth, the longest consecutive high since March. Consumer stocks and tech stocks led the rise. Meanwhile, telecommunications and utilities stocks fell.
European stocks have been under selling pressure earlier this year due to hawkish financial authorities, slowing growth, rising prices and the war in Ukraine. Last week, cheap valuations and continued good profit outlooks led to investment motivation, leading to bargain purchases.
German bonds have fallen in the European bond market. Eurozone government bonds have fallen across the board.Germany’s inflation rateRecord highAs the pressure to raise interest rates on the European Central Bank (ECB) increased, expectations for money market rate hikes accelerated.
Traders have factored in a total of 114 basis points (bp, 1bp = 0.01%) for ECB rate hikes up to December, the highest rate hike observed for the same period.
Gilts were also sold for a wide range of maturities. A total of 135bp is included in the outlook for rate hikes as of December by the Bank of England (Central Bank of England). It was 128bp as of the 27th.
Overview of the European market on May 30 (table as of 6 pm in London)
| bond | Most recent yield | Compared to the previous business day |
|---|---|---|
| Two-year German government bond | 0.45% | +0.10 |
| 10-year German government bond | 1.06% | +0.09 |
| 10-year British Debt | 1.99% | +0.07 |
Original title:European Stocks Climb as Easing China Curbs Boost Risk Sentiment
Bunds, Italy Bonds Open Lower; Focus on German Inflation, Stocks
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