European stocks extend rebound; STOXX Europe 600 up 0.9%
European stocks closed higher, with the Euro STOXX 50 up 0.9% and the STOXX Europe 600 up 0.9% as oil and gas prices softened and rate yields stabilized after the Fed’s 25 bps hike.
European stocks finished solidly higher on Thursday, following gains in global equities after lower oil and gas prices eased the elevated sovereign-yield backdrop. 9% to 643. Natural gas benchmarks across the continent and wholesale fuel costs eased after Saudi Arabia signaled its East-West pipeline could return to operation shortly, reducing risks of even more aggressive inflation in the Eurozone. Separately, the Fed raised rates by 25bps as expected, but the hawkish tone in Chairman Warsh's remarks flattened yield curves in economies with exposure to US credit and also softened long borrowing costs.
Banks ended higher, with Santander, BBVA and Deutsche Bank adding close to 2%. 5%.