European shares rise on banking boost after sharp sell-off

(Reuters) – Europe stock market It edged higher on Thursday, boosted by Spanish banks on reports that Madrid could revise bank taxes, while markets also showed some signs of recovery from a sharp sell-off sparked by bets for aggressive rate hikes around the world. This500 Stokes 25

The index rose 0.4% as of 75GMT, European bank shares rose nearly 2 percent after two consecutive days of losses. Euro zone bank shares rose 2.5% to their highest level since June . including Bankinter, Sabadell and Caixabank following local media reports that Madrid is keen to avoid a conflict with the ECB Shares of Spanish banks were up nearly 5% and bank taxes could be revised. Lenders will benefit the most from a higher interest rate environment, while 52500 Morgan Stanley

(NYSE: 52 Multiple Sclerosis

)) Upgraded Banking to Overweight, citing cheap valuations and resilient earnings. Earlier this week, fiery U.S. inflation data sparked a sell-off in global equities as it cemented that the Federal Reserve will raise interest rates again the opinion of15 basis points (bps) next week.

The European Central Bank sharply raised the benchmark lending rate bps last week. “We can see banks continue to outperform while high multiple tech and growth stocks underperform, That means the market is bullish on economic growth, not bullish. It’s being held back,” said Sumit Kendurkar, a senior trader at Optiver in Amsterdam. The ECB is on the verge of catching up with the Federal Reserve, which has embarked on an aggressive tightening cycle since earlier this year. Stoke dropped about % Year so far, with , the loss is smaller than % slips in

Standard & Poor’s 10

. Most sectors rose on Thursday, led by defensive utilities, suggesting risk-on sentiment in the market.

abrupt stop Russia’s natural gas pipeline to Europe The natural gas-importing utilities sector bore the brunt of the negative sentiment, raising concerns about a harsh winter for Europeans. However, after the gas importer said the government could take a controlling stake in the company as it seeks further aid , Germany’s Uniper rose 3.2%.

Euro area High inflation in the group has sparked a cost-of-living crisis in the group, which is also hitting discretionary spending. H&M shares fell 0.7% after the retailer reported lower-than-expected quarterly sales as shoppers swooned in energy and energy The case tightened its belt on food bills as it struggled to compete with rival Zara.