European stocks are rebounding today (May 13) as global markets try to regain some stability
after a volatile trading week.
The pan-European Stoxx 600 gained 1% in early trading, with bank stocks climbing 2% to lead
gains as all sectors and major bourses entered positive territory.
European markets fell on yesterday as investors remained concerned about slowing growth,
interest rate hikes and red-hot April inflation data from the U.S., which raised concerns that a
path of aggressive interest rate hikes lies ahead.
Global stocks have endured a rollercoaster week but look set to regain some ground today.
Shares in Asia-Pacific advanced with Japan’s Nikkei 225 leading the way on a 2.6% gain.
Meanwhile, U.S. stock futures were higher in early premarket trade as investors hope the S&P
500 can avoid sliding into bear market territory, with the index closing down more than 18%
from its all-time high yesterday, just 2% shy of an official bear market.
The tech-heavy Nasdaq is already in a bear market, closing yesterday down more than 29%
from its all-time high, while the Dow Jones Industrial Average has fallen for six consecutive
trading sessions.
Investors are also monitoring the geopolitical fallout from the war in Ukraine. Russia on
Thursday threatened retaliation against Finland after that country said it plans to apply to join
NATO.
European leaders are also facing a race to secure alternative gas suppliers after Moscow
announced sanctions on European subsidiaries of its majority state-owned corporation
Gazprom.
