Positive industry data gives European stocks a strong start to the new year

European stocks rose on Monday in the first trading sessions of 2023, as eurozone manufacturing data indicated that the worst had passed after a year marred by fears of a recession as central banks around the world raised interest rates.

The STOXX 600 rose 1 percent, supported by the stocks of sectors most affected by the economic cycle. The auto and spare parts sector rose 3.2 percent, and LVMH and Kering companies rose 2 percent each.

The European index ended 2022 with heavy losses, driven by central bank monetary tightening policies to control rising prices, the economic slowdown, the Russian-Ukrainian conflict that increased inflationary pressures, and growing fears of Covid-19 cases in China.

Interest-sensitive technology stocks, which were among the worst-performing sectors last year, rose 1.6 percent on the day despite growing indications from the European Central Bank of further monetary tightening.

The German DAX index rose 1.1 percent, and other European stock exchanges witnessed positive starts to the new year. The London and Dublin stock exchanges were closed for the New Year holidays.

Energy sector shares rose 1.8 percent, supported by the rise in oil prices.