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European equity markets climbed on Wednesday after tentatively breaking their losing streak at the end of Tuesday’s session.
The pan-European Stoxx 600 provisionally closed 0.7% higher, with tech stocks adding 2% to lead gains as most sectors and major bourses advanced. Mining stocks bucked the positive trend to fall by 1.2%.
Investors closely monitored a panel at the European Central Bank forum in Sintra, Portugal, attended by ECB President Christine Lagarde, Bank of England Governor Andrew Bailey, Federal Reserve Chairman Jerome Powell and Bank of Japan Governor Kazuo Ueda.
Powell said there was “more restriction coming,” with hikes at consecutive meetings still on the table, as he referenced continued strength in the labor market.
Bailey defended the BOE’s decision last week to enact a 50 basis point hike, when a 25 basis point rise had been widely expected. “Our job is to return inflation to target and we will do what is necessary. I understand the concerns that go with that, but I’m afraid I always say that it is a worse outcome if we don’t get inflation back to target,” he told the panel, moderated by CNBC’s Sara Eisen.
Markets received a boost from a slew of data out of the U.S. on Tuesday that eased concerns about a sharp economic slowdown, with increases registered in key capital goods orders and consumer confidence.
At the Sintra forum on Tuesday, participants delivered a “higher for longer” message on rates. ECB Governing Council member Mārtiņš Kazāks told CNBC that markets were pricing in rate cuts too soon and at too fast a pace. Kazāks said he believes “next year is way too early” to think about cuts.
U.S. stocks were flat, while Asia-Pacific markets were mixed as the region digests May inflation figures out of Australia and China releases its industrial profits for May.
Correction: This story has been updated to remove an inaccurate description and video graphic that misrepresented Amazon’s current engagement with Ocado.
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