Market Drivers – European Session 7-2-2022

European shares rebounded on Monday after five straight weeks of losses, as gains in mining stocks and positive business results overshadowed fears of a series of looming monetary policy tightening and geopolitical tension.

The pan-European Stoxx 600 index rose 0.1 percent, after falling 0.7 percent last week.

The euro fell on Monday after rising last week that followed a shift from the European Central Bank to tighten monetary policy, as traders turned to the dollar on bets that the jump in jobs created by the US economy in January could lead to faster rate increases.

The single European currency fell 0.2 percent to $1.1425, after hitting its highest level since mid-January on Friday.

Industrial Production in Germany unexpectedly fell in December, the official data showed on Monday, suggesting that the manufacturing sector is not out of the woods yet.

Eurozone’s economic powerhouse’s industrial output fell by 0.3% MoM, the federal statistics authority Destatis said in figures adjusted for seasonal and calendar effects, vs. a 0.4% increase expected and -0.2% last.