LONDON ― European markets climber higher Friday afternoon, gaining some respite from a torrid week as the third quarter drew to a close.
The pan-European Stoxx 600 was up 1.1% by mid-afternoon, as media and construction stocks both added 2.2%. Household goods and utilities were flat on the previous day.
Global stocks have struggled in recent sessions amid fears over slowing growth and aggressive monetary policy tightening.
The widespread sell-off on Wall Street continued on Thursday, with all three major averages falling sharply as investors assessed the outlook for future rate-hiking decisions from the U.S. Federal Reserve and their impact on the markets. The S&P 500 hit a fresh low for the year. Stock futures were mixed in early premarket trade on Friday.
Shares in Asia-Pacific also retreated on Friday following the overnight plunge stateside, though new data showed Chinese factory activity unexpectedly expanded in August.
Volatility continues in U.K. markets after the Bank of England intervened in the bond market on Wednesday in order to shore up the country’s financial stability, after a historic sell-off in long-dated gilts.
Sterling also hit an all-time low on Monday following the new government’s widely condemned fiscal policy announcements, but has staged a significant rally in recent days and hit a week-high on Friday.
Stateside, several Fed officials are due to speak on Friday afternoon, and the markets will be watching closely for indications as to the pace of future rate hikes from the central bank.
Read More: European markets recover some losses after global sell-off; Stoxx 600 up 1.1%