A Sudden Turn From The European Central to Tighten Revives European Shares After a Wave of Selling

European shares rose on Friday, recouping some of Thursday’s losses, which were close to 2%, after a sudden shift by the European Central Bank towards tightening monetary policy, as it said it would stop pumping money into financial markets this summer.

The pan-European Stoxx 600 index rose 0.6 percent, after falling 1.7 percent in the previous session.

The European Central Bank on Thursday paved the way for an interest rate hike, as soaring inflation overshadowed concerns about the fallout from Russia’s invasion of Ukraine.

European Central Bank member Francois Villeroy de Gallo said on Friday that there was no recession in Europe and that the economy was still growing despite the impact of the war on activity.