The pan-regional STOXX 600 rose by 0.5% with support from technology stocks sensitive to rates, while the energy sector saw a 0.8% increase.
2022 Closes with Sharp Losses for STOXX 600
The STOXX 600 ended 2022 with significant losses, driven by aggressive policy tightening from central banks to curb rising prices, an economic slowdown, the Russia-Ukraine war that added to inflationary pressures, and growing concerns over the spread of COVID-19 in China. Despite these challenges, the German DAX saw a 0.5% increase.
German Finance Minister Expects Inflation to Fall in 2024 and Beyond
Germany's finance minister predicts that inflation in the country, the largest economy in Europe, will drop to 7% this year and continue falling in 2024 and beyond. However, the minister also expects high energy prices to become the norm.
London and Dublin Stock Exchanges Closed for New Year's Day
While other European stock exchanges had a positive start to the new year, the London and Dublin stock exchanges were closed in observance of New Year's Day.
Croatia Makes Historical Changes in New Year
As the European Union's newest member, Croatia made two historical changes as the new year began. The country joined the EU's Schengen zone, which allows for border-free travel and the euro currency.