# European stocks find support at end of volatile week
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2022-05-13
Category: INVESTING
Category URL: https://financedigest.com/category/investing
Meta Title: European Shares Rise Amid Volatile Week
Meta Description: European shares climb as worries about monetary policy and global growth ease. STOXX 600 gains led by banks and tech stocks. Fed Chair reassures market on
URL: https://financedigest.com/european-stocks-find-support-at-end-of-volatile-weekhtml

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(Reuters) -European shares rose on Friday, as sentiment stabilised at the end of a volatile week dominated by worries about aggressive monetary policy tightening and slowing global growth.

The pan-European STOXX 600 index rose 1.3%, with banks and technology stocks leading early gains.

Global markets, particularly U.S. stocks, have gyrated wildly this week as investors feared that tightening financial conditions, with the Federal Reserve preparing for a series of interest [rate hikes to contain a surge in inflation](https://www.financedigest.com/german-inflation-rate-to-ease-over-course-of-2023-econ-minister.html "German inflation rate to ease over course of 2023 – econ minister"), will tip the economy into recession. \[.N\]

Fed Chair Jerome Powell repeated on Thursday his expectation that the Fed will raise interest rates by half a percentage point at each of its next two policy meetings, easing [worries about a bigger 75 basis point rate hike](https://www.financedigest.com/stocks-falter-as-economic-worries-nag-nz-delivers-big-rate-hike.html "Stocks falter as economic worries nag, NZ delivers big rate hike") that some investors were expecting.

Despite Friday’s gains so far, the STOXX 600 is [set to post its fifth consecutive weekly](https://www.financedigest.com/londons-ftse-100-edges-higher-set-for-fourth-weekly-gain.html "London’s FTSE 100 edges higher, set for fourth weekly gain") decline.

The risks are to the downside with huge jump in [economic uncertainty](https://www.financedigest.com/combatting-economic-uncertainty-in-2023-with-the-payments-sector-2.html "Combatting economic uncertainty in 2023 with the payments sector") and large real disposable income shocks for households,” Deutsche Bank economists said in a note.

[“Recession risk](https://www.financedigest.com/high-inflation-recession-risk-widen-ecb-dilemma.html "High inflation, recession risk widen ECB dilemma") is rising. [Ukraine war](https://www.financedigest.com/ukraine-seeks-debt-payment-freeze-as-war-ravages-economy.html "Ukraine seeks debt payment freeze as war ravages economy") is the main concern in 2022. The main concern in 2023 is combined ECB/Fed tightening.”

Among individual stocks, [Deutsche Telekom](https://www.financedigest.com/deutsche-telekom-reaches-majority-stake-in-t-mobile-u-s-ceo.html "Deutsche Telekom reaches majority stake in T-Mobile U.S. – CEO") edged 0.7% higher, after it raised its annual earnings guidance.

[Wind turbine](https://www.financedigest.com/pge-signs-wind-turbine-supply-deal-for-baltica-2.html "PGE signs wind turbine supply deal for Baltica 2") maker Vestas dropped 4.4%, after Berenberg downgraded the stock to “hold.

French care home group Orpea, which [faces criminal complaints over how it runs](https://www.financedigest.com/yangtze-tributary-runs-dry-as-china-faces-another-month-of-drought.html "Yangtze tributary runs dry as China faces another month of drought") its centres and treats its elderly residents, dropped 4.7% after saying that it would not pay a dividend on 2021 earnings.

Norwegian Air edged up 0.5%, as the airline posted a [quarterly loss and said the surge in fuel costs](https://www.financedigest.com/suedzucker-quarterly-profits-surge-73-5-despite-cost-rise.html "Suedzucker quarterly profits surge 73.5% despite cost rise") would partly offset the effects of increased summer bookings.

(Reporting by Sruthi Shankar in Bengaluru; Editing by Subhranshu Sahu and Rashmi Aich)


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