European stock markets posted modest gains on Tuesday, with traders hopeful that central banks will not push the global economy into recession by raising interest rates too much to fight inflation.
The pan-European index Stoxx 600 strengthened by 0.2 per cent, while the French Cac 40 and the German DAX, reports the Financial Times. As expected, trading volume remained low as US stock markets were closed on Tuesday for the national holiday, Independence Day.
Shares in Asia had previously strengthened after the Reserve Bank of Australia decided to keep interest rates at the current level of 4.1 per cent and wait for the impact of previous interest rate increases on the economy.
The Australian central bank made its decision guided by data on the decline in annual inflation in the country, which was faster than expected. Inflation fell to 5.6 per cent in May, the lowest level in the last 13 months. Inflation in April was 6.8 per cent. This move encouraged investors.
Australia’s S&P/ASX 200 stock index gained 0.5 per cent after the news, while China’s CSI 300 gained 0.2 per cent. Hong Kong’s Hang Seng gained 0.6 per cent, and Japan’s Topix fell 0.6 per cent.
The German DAX recorded the biggest losses in the energy and basic raw materials sector. The latest data shows that German exports fell by 0.1 per cent in May, as high-interest rates affect Berlin’s key trading partners. In their forecasts, analysts announced an increase in exports in May by 0.3 per cent.
Tesla shares the strongest since September
The value of the American car manufacturer Tesla shares recorded on Monday the largest daily percentage increase since March after the company reported quarterly sales a day earlier. Shares of other electric vehicle manufacturers in the US and China also gained after Tesla’s stock closed at its highest value since September of last year.
Tesla’s shares rose by 6.9 per cent, boosting the value of shares of other electric vehicle manufacturers. The shares of the Rivian Automotive company strengthened by more than 12 per cent, while the shares of the Lucid Group gained about five per cent in value, the Wall Street Journal reports.
