- The pan-European Stoxx 600 ended Monday's session up by 0.7%, having lost more than 0.8% at the start of trading.
- Investors continue to digest new economic projections from the Federal Reserve and worry that rate hikes could come sooner than expected.
- British supermarket chain Morrisons surged nearly 35% after rebuffing a proposed £5.52 billion takeover from private equity firm CD&R.
LONDON — European stocks reversed earlier losses to close higher on Monday, following jitters in global markets over a more hawkish tone from the U.S. Federal Reserve.
The pan-European Stoxx 600 ended the session up by 0.7%, having lost more than 0.8% at the start of trading. Autos added 3% to lead gains as almost all sectors and major bourses finished in positive territory.
The choppy trading in Europe follows similar moves elsewhere. After falling sharply in early premarket trade, U.S. stocks bounced back into positive territory on Monday.
The moves come as investors continue to digest new economic projections from the Federal Reserve and worry that rate hikes could come sooner than expected.
Last Wednesday, the Fed raised its inflation expectations and forecast rate hikes in 2023. St. Louis Fed President Jim Bullard said Friday on CNBC's "Squawk Box" that it was natural for the central bank to tilt a little more "hawkish" and saw higher interest rates as soon as 2022.
In terms of individual share price movement in Europe, British supermarket chain Morrisons surged 34.6% after rebuffing a proposed £5.52 billion ($7.62 billion) takeover from private equity firm Clayton, Dubilier & Rice on the grounds that it "significantly undervalued the company and its potential." The rejection prompted speculation that CD&R will be forced to raise its offer.
At the bottom of the European blue chip index, German telecoms company Freenet fell 6.9%.
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