{"id":25688,"date":"2022-09-09T09:45:26","date_gmt":"2022-09-09T09:45:26","guid":{"rendered":"https:\/\/www.pantheregroup.com\/2022\/09\/09\/european-shares-rally-ahead-of-eu-energy-ministers-meeting\/"},"modified":"2022-09-09T09:45:26","modified_gmt":"2022-09-09T09:45:26","slug":"european-shares-rally-ahead-of-eu-energy-ministers-meeting","status":"publish","type":"post","link":"https:\/\/www.pantheregroup.com\/2022\/09\/09\/european-shares-rally-ahead-of-eu-energy-ministers-meeting\/","title":{"rendered":"European Shares Rally Ahead Of EU Energy Ministers Meeting"},"content":{"rendered":"
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European stocks were sharply higher on Friday, a day after the European Central Bank (ECB) raised interest rates by a record 75 basis points and signaled further hikes to tame runaway inflation.<\/p>\n

The ECB must raise interest rates further to prevent record euro-zone inflation from spilling over into wages, Governing Council member Klaas Knot said.<\/p>\n

Separately, Slovakia’s Peter Kazimir called for “resolute hikes” to tackle “painfully” high inflation.<\/p>\n

Meanwhile, investors shrugged off data showing that French industrial production fell for the first time in three months in July.<\/p>\n

Industrial production declined 1.6 percent from June, when output was up 1.2 percent, the statistical office Insee said. This was the first fall in three months.<\/p>\n

Economists had forecast a moderate 0.5 percent drop for July.<\/p>\n

The focus now shifts to a meeting of European Union countries’ energy ministers later in the day, where they will attempt to forge a united response to shield citizens from sky-high energy prices as winter approaches.<\/p>\n

The pan European Stoxx 600 rallied 1.6 percent to 420.65 after rising half a percent in the previous session.<\/p>\n

The German DAX jumped 1.5 percent, France’s CAC 40 index added 1.8 percent and the U.K.’s FTSE 100 was up 1.7 percent. <\/p>\n

Banks, which would benefit from higher interest rates, advanced on expectations that the ECB will deliver another supersized interest rate increase in October.<\/p>\n

Commerzbank, Deutsche Bank, BNP Paribas and Credit Agricole gained 3-5 percent.<\/p>\n

Telecom Italia surged nearly 3 percent on reports that the telecommunications company is close to kicking off a process to sell a minority stake in its enterprise service arm.<\/p>\n

Miners Anglo American, Antofagasta and Glencore soared 5-6 percent as copper prices rose on a weaker dollar. <\/p>\n

Cineworld Group shares jumped 18 percent. The entertainment<\/span> conglomerate and its subsidiaries have received approval for “first day” relief from a U.S. bankruptcy court, giving it immediate access to around $785 million from a $1.94 billion line of credit to support operations.<\/p>\n

Self-storage firm Big Yellow Group added 1.2 percent after refinancing its \u00a3120 million debt facility.<\/p>\n

Vesuvius gained 1.5 percent. The ceramics company said that its Chief Financial Officer Guy Young has resigned to pursue a new opportunity. <\/p>\n<\/p>\n

Market Analysis<\/p>\n<\/div>\n