European markets were choppy on Monday as volatility continued amid concerns over economic growth and monetary policy tightening from central banks.
The pan-European Stoxx 600 hovered around the flatline by mid-afternoon, having fallen more than 0.8% in early trade. Retail and chemicals stocks both added 2% while utilities fell 1.1%.
Along with concern over interest rate hikes from central banks and their impact on economic growth, markets in Europe are also watching developments in Ukraine, where the war is showing signs of escalating. Multiple explosions hit the center of Ukraine’s capital Kyiv on Monday.
European shares initially followed negative global sentiment as investors bet that last week’s U.S. jobs data will keep the Federal Reserve on an aggressive path of interest rate hikes. However, opening losses were all but erased by late morning.
U.S. stock futures were higher in early deals Monday, with Wall Street looking ahead to a key inflation print on Thursday and the beginning of corporate earnings season.
Markets in Asia-Pacific retreated overnight, with Hong Kong’s Hang Seng index leading losses as Chinese chip stocks listed in the city plunged following new export rules from the U.S.