European shares extend winning streak, but post weekly decline

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European shares extend winning streak, but post weekly decline

On Friday, the 20th of March 2020, a slew of European shares had winded down the day marginally higher for the second straight session, however retreated from their session-highs on late-afternoon trading as a rapidly spreading coronavirus pandemic across a majority of European economies had whacked away initial optimisms.

In point of fact, despite a recent small-scale rally of European shares which appeared to be stemmed from tens of billions of euros in fiscal injection from a number of Central Banks in Europe alongside a magnanimous €750 billion war chest of bond purchases promised by the ECB (European Central Bank) to calm down panicky investors, the regional pan-European STOXX 600 fell for the fifth straight week in a row, nonetheless scored an intra-day gain of 1.8 per cent.

Meanwhile, adding that it was too early to call the European markets had hit the bottom, a market economist at Capital Economics in London, Simona Gambarini said on Friday (March 20th), “…We remain of the view that markets will only stabilize when there are signs that the pandemic is being brought under control.

The ECB will eventually have to go further. We think that the ECB will commit to keep sovereign bond yields low for all governments at least for the duration of the coronavirus crisis. ” Citing statistics, on Friday’s (March 20th) market wrap-up, London’s FTSE 100 added 0.76 per cent to 5,190.78, French CAC 50 skyrocketed as much as 5.01 per cent to 4,048.80, while Frankfurt’s DAX snowballed 3.70 per cent to round off Friday’s (March 20th) European market at 8,928.95.

Elsewhere in the Europe, Madrid’s benchmark IBEX 35 gained 0.74 per cent to 6,443.30, while Italy’s FTSE MIB gained as much as 1.71 per cent to wind up Friday’s (March 20th) market at 15,731.85.