EU, ITALY – European shares rebounded from a six-month low on Monday, supported by a seemingly lower level of tension triggered by a sudden surge in volatility that wiped out $ 1 trillion of market capitalization last week.
Gains on the broad Stoxx 600 index helped the European Union close 1.2 percent higher after ending Friday’s session at the lowest level since August.
Among the major markets in Europe, the British Financials and the German DAX rose 1.2 percent and 1.5 percent respectively.
Eurozone volatility slipped from peak levels last week as a jump in inflation expectations pushed bond yields higher and fueled concerns about monetary policy tightening from central banks.
Analysts said they believed the market rally on Monday was only a short-term correction and not the end of a downtrend.
The STOXX 600 remains 4.1 percent lower than at the beginning of the year.
After leading a wave of sales in previous sessions, sectors linked to the economic sessions recovered on Monday. The basic resources sector came in the forefront with a 1.9% rise.
