European stocks suffered their first loss after climbing for 7 weeks

European equities rallied in Friday’s session, along with industrials and financials in higher on optimism about China but fears of a recession in view of a series of central bank decisions sent the STOXX 600 index to take a weekly loss after a 7-week rally.

The Stoxx 600 index has closed in up 0.8%, breaking a 5 day losing streak that was in largely driven by fears of an impending global recession due to sharp interest rate hikes by central banks, according to Reuters.

The Stoxx 600 index is down 0.9% in total trade this week.

And data released on Thursday showed that rising weekly jobless claims in the US raised hopes that the Federal Reserve would soften its tough stance on raising interest rates, with China to ease its tight restrictions to fight the Corona virus.

The coming week will be crucial, as interest rate decisions are expected from the Federal Reserve, the Bank of England and the European Central Bank.

Industrial stocks such as Siemens and Schneider Electric were among the index’s biggest supporters, as were financial stocks with exposure to China.

Bank stocks broke a 4-day losing streak and rose 0.9%.

Shares of Credit Suisse rose 6.8% after raising 2.24 billion Swiss francs ($2.39 billion) on Thursday’s session as part of a 4 billion franc capital raise, in the scope of a restructuring plan.

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