Europe is one step away from July’s close with biggest monthly gain since November 2020

Europe started the session in green, one step away from the July close as the biggest monthly gain since November 2020. “earnings season” boosts investor sentiment.

The market is still digesting the possibility of a slowdown in interest rate hikes by the US Federal Reserve, at a time when “recession” has become part of investors’ routine. Fear of this phenomenon is exacerbated in Europe as the United States enters a technical recession.

The benchmark Stoxx 600 added 0.65% to 435.58 points, extending the gains of the last session, as the European benchmark index renewed its seven-week highs. Among the 20 sectors that make up the index, travel, leisure and mining lead the gains. The bank also emerged in the green, after BNP Paribas, Standart Chareted and Vizcaya Argentaria reported strong results ahead of the session.

Among the major moves, Hermes International stock surged 7.40%, retracing six-month highs, after Bernstein analysts gave a positive assessment of the company. Capgemini also renews its March highs, rising 5.85%, after analysts described second-quarter results as “impressive.”

In the remaining European markets, Madrid advanced by 0.88%, Frankfurt gained 0.52%, and Paris added 1.54%. London rose 0.27%, Amsterdam 0.35% and Milan 1.14%. Here, Lisbon is following the trend with a gain of 0.82%.

“The outlook at the end of June was so negative that we’re seeing a significant uptick,” explained Dan Boardman Weston, CEO of BRI Wealth Management. However, the expert predicts that “the fear that interest rates will continue to rise and that consumer and business sentiment will be under pressure is making the rest of the year very difficult.”

Goldman Sachs also shares this alert. Analysts led by Sharon Bell are warning that the European stock market has not fully integrated into prices the stagnation hypothesis, according to a “research” note cited by Bloomberg.