European Shares Edge up on Energy Boost; Set for Weekly Losses: U.S News & World Report Money

European shares edged up on Friday, buoyed by gains in energy stocks, but were still on track for weekly losses as concerns over rising inflation and the impact of the Omicron variant continued to weigh on investor sentiment.

The STOXX 600 index rose 0.4% in early trading, with energy stocks leading the gains as oil prices rebounded from recent lows. Shares in BP, TotalEnergies, and Royal Dutch Shell all climbed, helping to offset losses in other sectors such as technology and healthcare.

Despite the positive start to the day, European shares were set to end the week in the red, with the STOXX 600 on track for a weekly loss of around 1.5%. Investors have been grappling with a range of uncertainties, including the prospect of tighter monetary policy from central banks and the potential economic impact of the latest Covid-19 variant.

“The market is still in a state of flux, with investors struggling to make sense of the various cross-currents at play,” said a market analyst. “While the rally in energy stocks is providing some support today, the overall mood remains cautious.”

In the U.S., futures pointed to a higher open on Wall Street, with investors awaiting the latest data on consumer sentiment and inflation. The Federal Reserve’s decision to accelerate the tapering of its bond-buying program has added to concerns about the outlook for equities, although many analysts believe that the overall economic backdrop remains supportive.

“Despite the challenges facing markets, there are reasons to be optimistic about the longer-term outlook,” said an investment strategist. “Corporate earnings are still strong, and economic growth is expected to remain robust in the coming months. While volatility may persist in the near term, we believe that equities can still offer attractive returns over the medium to long term.”

Overall, while European shares may be facing a challenging end to the week, many investors remain hopeful that the current uncertainties will eventually pass, allowing global markets to resume their upward trajectory.