- The pan-European Stoxx 600 index closed higher Thursday after making losses earlier in the day.
- Investors remain wary of the prospect of persistently high inflation, monetary policy tightening from central banks and a potentially prolonged period of sluggish economic growth.
LONDON — European markets closed higher Thursday as investors assessed a number of likely headwinds in 2023.
The pan-European Stoxx 600 index closed up 0.7%, having clawed back opening losses of around 0.5%. Most sectors and major bourses were up, with tech stocks adding 2% to lead gains. Mining stocks bucked the trend and dropped 0.4%.
The European blue chip index began Thursday's session down more than 12% for the year and is on course for its worst year since 2018.
Global stock markets are rounding off a tumultuous and difficult year, as governments and central banks grappled with sky-high inflation arising from the fallout from Russia's war in Ukraine, and persistent Covid-19 restrictions in China.
The boost offered on Tuesday by China's relaxation of the last of the zero-Covid measures, which it has held in place for almost three years, proved fleeting as caution returned throughout the week.
Investors remain wary of the prospect of persistently high inflation, monetary policy tightening from central banks and a potentially prolonged period of sluggish economic growth.
One economist told CNBC on Tuesday that most major economies would be "lucky" to achieve 1% GDP growth per annum for much of the next decade.
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