LONDON — European stocks closed higher on Monday after a tumultuous five days of trading last week.
European markets
The pan-European Stoxx 600 provisionally closed up by 0.9%, with banks surging 3.3% to lead the gains as most sectors and major bourses ended in positive territory.
It comes after a turbulent week of trading on the back of a flurry of central bank action.
The U.S. Federal Reserve raised its benchmark funds rate by 75 basis points, its largest hike since 1994, before the Swiss National Bank surprised markets with its first hike since 2007 and the Bank of England implemented its fifth rate rise in a row.
Following an emergency meeting last Wednesday, the European Central Bank also announced that it plans to create a new tool to tackle the risk of euro zone fragmentation, a move aimed at assuaging fears of a fresh debt crisis for the common currency bloc.
French markets nudged higher but lagged other major European bourses after President Emmanuel Macron lost his absolute majority in the country's parliamentary election, potentially jeopardizing his economic agenda. France's CAC 40 index closed up 0.6%.
Stateside, all the major averages ended the week in the red, with the S&P 500 posting its worst week since 2020. Markets in the U.S. are closed on Monday for a public holiday.
Overnight, shares in Asia-Pacific closed mostly lower as investors monitored market reaction to the release of China's latest benchmark lending rates.
On the data front in Europe, German producer prices soared by 33.6% year-on-year in May, their largest increase on record, according to new official statistics published Monday.
Renault shares gained 9.7% on Monday after Jefferies upgraded the French automaker's stock to "buy" from "hold."
At the bottom of the index, Italian energy firm A2A Spa fell 5.5%.