Fears of a worldwide economic slowdown were stoked by data from China that was poorer than expected; nevertheless, European stocks were able to close higher on Friday, which helped to offset some of this week’s losses.
At the end of the trading day, the pan-European Stoxx 600 index had increased by 1.8 per cent, with gains led by an increase in the automobile sector of 4%.
Shares of Uniper, which is based in Germany, increased by 6% after it was reported that Fortum, which is the primary owner of Uniper and is based in Finland, said it was required to evaluate all possibilities to ensure the security of European energy markets.
Draghi announced his resignation as Italy’s leader after a political party in his ruling coalition declined to participate in a vote of confidence earlier in the day.
In Asia, Chinese markets finished mainly lower as Beijing’s figures for the growth of the country’s gross domestic product came in lower than expected.
The economy of the world’s second-largest economy managed to eke out an increase in GDP of 0.4 per cent from the same period a year ago, falling short of forecasts as the economy struggled to shake off the impact of Covid regulations.
The second quarter was expected to see a growth of one per cent, according to polls conducted by Reuters.
This comes amid a recent flurry of global interest rate hikes, which have increased anxieties about the future of economic growth.
The Bank of Canada shocked the financial markets by increasing interest rates by one full percentage point, and the central banks of South Korea, New Zealand, Singapore, and the Philippines all took action to tighten monetary policy to combat rising inflation.
An unanticipatedly high reading of inflation may also prompt the Federal Reserve of the United States to accelerate the action it takes on monetary policy.
Friday was a good day for stocks on Wall Street as investors absorbed a fresh batch of bank profits and retail sales for June that came in better than expected. Citigroup’s stock rose by 5.2 per cent as a result of the company beating projections and benefiting from an environment in which interest rates are rising.
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After the country’s president turned down Prime Minister Mario Draghi’s offer to quit on Thursday, political unpredictability returned to Rome in Europe.
After a political party in his ruling coalition declined earlier in the day to take part in a vote of confidence, Draghi announced that he would step down as the leader of Italy. Draghi’s resignation was rejected by Italian President Sergio Mattarella, who also requested that Draghi speaks to Parliament to gain a better understanding of the current political climate.
