European shares open higher on bank boost

The banks sector index added 1.1% by 0715 GMT, extending gains since Thursday when the ECB raised its key rates by an unprecedented 75 basis points (bps) and promised further hikes. Several banks expect another 75 bps rate hike in October. Investors also followed developments around the looming energy crisis in Europe.


Reuters | Updated: 12-09-2022 12:55 IST | Created: 12-09-2022 12:53 IST
European shares open higher on bank boost
Representative Image Image Credit: Pixabay

European shares opened higher on Monday as banks advanced for a third straight session on bets of more big interest rate hikes by the European Central Bank (ECB).

The pan-European STOXX 600 index rose 0.2%, following its first weekly gain in four on Friday. The banks sector index added 1.1% by 0715 GMT, extending gains since Thursday when the ECB raised its key rates by an unprecedented 75 basis points (bps) and promised further hikes. Several banks expect another 75 bps rate hike in October.

Investors also followed developments around the looming energy crisis in Europe. European Union energy ministers on Friday tasked Brussels with drafting proposals within a few days to cap the revenues of non-gas energy producers and help power firms stay afloat.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)

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