European shares log best month since November 2020 on earnings’ cheer, GDP data



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European shares log best month since November 2020 on earnings’ cheer, GDP data

A basket of major European stock indices had wrapped up Friday’s market in an upbeat tenure with regional pan-European STOXX logging its best monthly percentage gain since November 2020. In the matter of the fact, in the day’s sharp gain in major European bourses had largely echoed the Friday’s gains in Wall Street, where corporate earnings also had ramped up investors’ morale despite a growing recession risk.

On top of that, NarWest, BBVA alongside BNP Paribas rose after riant quarterly earnings’ report, as major corporate big-whales seemed to be pushing their additional expenses stemming from a lacerating inflation-surge, down to end consumers.

Adding further optimism, data released on Friday had unveiled that the Eurozone’s economy grew faster-than-anticipated, while EU GDP rose by 0.7 per cent between April and June. On a year-on-year basis, second quarter GDP had reported a 4.0 per cent gain, handsomely beating an analysts’ expectation of a gain of 0.2 per cent.

European stocks skyrocket at end of volatile July

Citing statistics, in the day’s European market wind-down, London’s FTSE 100 gained 1.06 per cent to 7,423.43 and French CAC 40 rose 1.72 per cent to 6,448.50, while Frankfurt’s DAX jumped 1.52 per cent to 13,484.05.

Elsewhere in the Europe, Italy’s FTSE MIB climbed 2.16 per cent to 22,405.48, while Madrid’s benchmark IBEX 35 added 0.88 per cent to 8,156.20. Over the week, London’s blue-chip FTSE 100 added 2.02 per cent, French CAC 40 Jumped 3.73 per cent and Frankfurt’s DAX added 1.74 per cent, while Italy’s FTSE MIB surged 5.73 per cent and Madrid’s IBEX 35 edged 1.30 per cent higher.

Over a tumultuous July, London’s FTSE 100 soared 3.55 per cent, French CAC 40 took a giant leapfrog of 8.72 per cent and Frankfurt’s DAX leapt 5.24 per cent, while Italy’s FTSE MIB rose by 4.30 per cent and Madrid’s IBEX 35 lost 0.24 per cent.

Meanwhile, addressing to a gloomy outlook ahead for European stocks with German GDP contracting in second quarter, Morgan Stanley economists wrote in a client note, “he picture still looks patchy, with uneven dynamics in terms of consumption and investment - we still expect a material deterioration in the outlook in Q3 and a mildly negative print in Q4”.