European shares rise in the first trading session in 2023

European stocks rose in the first trading session of 2023 on Monday, after a difficult year marred by fears of a recession sparked by global central banks’ hike in interest rates and the Russia-Ukraine war.

The pan-European Stoxx 600 index was up 0.5 percent at 0810 GMT, supported by interest rate-sensitive technology stocks. And the energy sector increased 0.8 percent.

The STOXX 600 ended 2022 with sharp losses on the back of the strong monetary tightening policy pursued by the major central banks in the world to rein in high prices, as well as the economic slowdown and the Russian-Ukrainian war that increased inflationary pressures and the growth of concerns about an increase in cases of Covid-19 in China.

German Finance Minister Christian Lindner expects inflation in Europe’s largest economy to drop to 7 percent this year and to continue to decline in 2024 and beyond, but he also expects energy prices to remain high and for that rise to become the norm.