Banks, energy stocks fuel rebound in European shares



(For a Reuters live blog on U.S., UK and European stock markets, click

or type LIVE/ in a news window)

* Construction & materials among worst hit sectors

* ECB's Lagarde reaffirms rate hike plans

* Renault jumps after Jefferies upgrade (Updates to close)

By Sruthi Shankar

June 20 (Reuters) - European stocks rose strongly on Monday after a sharp selloff last week on recession worries, while gains in French shares were capped after President Emmanuel Macron lost an absolute majority in the country's parliamentary election.

The pan-European STOXX 600 index .STOXX closed up 1.0%, with battered banking .SX7P , travel .SXTP and energy .SXEP stocks leading the gains, but volumes were crimped with U.S. markets closed for a holiday.

The benchmark shed 4.6% and hit over one-year lows last week in a global sell-off that was fuelled by worries about aggressive interest rate hikes by the U.S. Federal Reserve and other major central banks sparking a recession.

"Friday's options expiry and the lack of big central bank decisions might help equity bulls to wrench back control this week, even if only for a short while," said Chris Beauchamp, chief market analyst at online trading platform IG.

European Central Bank Chief Christine Lagarde on Monday reaffirmed plans to raise interest rates twice this summer, while fighting widening spreads in the borrowing costs of different euro zone countries.

France's blue-chip CAC 40 .FCHI rose 0.6%, the least among major regional indexes, after Emmanuel Macron's centrist Ensemble coalition secured the most seats in the National Assembly over the weekend but fell well short of securing an absolute majority needed to control parliament.

"It will mean that there will probably be less structural reforms but we're already underweight Europe and it does not significantly change our stance," said Willem Sels, global chief investment officer, private banking and wealth management at HSBC.

The STOXX 600 has shed almost 17% this year so far, as a cocktail of worries from soaring inflation to China's slowing economy and cost-of-living crisis in the UK dampen risk appetite.

"We'll continue to see some volatility because inflation, in our view, is not going to start to come down until the end of this year," Sels added.

Data showed German producer prices surged by a more-than-expected 33.6% in May, on a year-on-year basis.

Europe's construction and materials index .SXOP dropped 1.8% after Irish building insulation specialist Kingspan KSP.I said the mood in most end markets deteriorated resulting in a dip in orders over the last two months.

Kingspan's shares tumbled 11.4%, while Danish peer Rockwool ROCKb.CO and France's Saint-Gobain SGOB.PA fell around 4% each.

French carmaker Renault RENA.PA jumped 9.7% after Jefferies upgraded the stock to "Buy".

Valneva VLS.PA surged 29.3% after U.S. healthcare giant Pfizer PFE.N agreed to invest 90.5 million euros ($95.24 million) for an 8.1% stake in the French vaccine company.
Reporting by Sruthi Shankar and Susan Mathew in Bengaluru; Editing by Bernadette Baum

Disclaimer: Ang mga kabilang sa XM Group ay nagbibigay lang ng serbisyo sa pagpapatupad at pag-access sa aming Online Trading Facility, kung saan pinapahintulutan nito ang pagtingin at/o paggamit sa nilalaman na makikita sa website o sa pamamagitan nito, at walang layuning palitan o palawigin ito, at hindi din ito papalitan o papalawigin. Ang naturang pag-access at paggamit ay palaging alinsunod sa: (i) Mga Tuntunin at Kundisyon; (ii) Mga Babala sa Risk; at (iii) Kabuuang Disclaimer. Kaya naman ang naturang nilalaman ay ituturing na pangkalahatang impormasyon lamang. Mangyaring isaalang-alang na ang mga nilalaman ng aming Online Trading Facility ay hindi paglikom, o alok, para magsagawa ng anumang transaksyon sa mga pinansyal na market. Ang pag-trade sa alinmang pinansyal na market ay nagtataglay ng mataas na lebel ng risk sa iyong kapital.

Lahat ng materyales na nakalathala sa aming Online Trading Facility ay nakalaan para sa layuning edukasyonal/pang-impormasyon lamang at hindi naglalaman – at hindi dapat ituring bilang naglalaman – ng payo at rekomendasyon na pangpinansyal, tungkol sa buwis sa pag-i-invest, o pang-trade, o tala ng aming presyo sa pag-trade, o alok para sa, o paglikom ng, transaksyon sa alinmang pinansyal na instrument o hindi ginustong pinansyal na promosyon.

Sa anumang nilalaman na galing sa ikatlong partido, pati na ang mga nilalaman na inihanda ng XM, ang mga naturang opinyon, balita, pananaliksik, pag-analisa, presyo, ibang impormasyon o link sa ibang mga site na makikita sa website na ito ay ibibigay tulad ng nandoon, bilang pangkalahatang komentaryo sa market at hindi ito nagtataglay ng payo sa pag-i-invest. Kung ang alinmang nilalaman nito ay itinuring bilang pananaliksik sa pag-i-invest, kailangan mong isaalang-alang at tanggapin na hindi ito inilaan at inihanda alinsunod sa mga legal na pangangailangan na idinisenyo para maisulong ang pagsasarili ng pananaliksik sa pag-i-invest, at dahil dito ituturing ito na komunikasyon sa marketing sa ilalim ng mga kaugnay na batas at regulasyon. Mangyaring siguruhin na nabasa at naintindihan mo ang aming Notipikasyon sa Hindi Independyenteng Pananaliksik sa Pag-i-invest at Babala sa Risk na may kinalaman sa impormasyong nakalagay sa itaas, na maa-access dito.

Gumagamit kami ng cookies para mabigyan ka ng mahusay na karanasan sa aming website. Magbasa pa o palitan ang iyong cookie settings.

Babala sa Risk: Maaaring malugi ang iyong kapital. Maaaring hindi nababagay sa lahat ang mga produktong naka-leverage. Mangyaring isaalang-alang ang aming Pahayag sa Risk.