European shares end higher, but log worst week since mid-March

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European shares end higher, but log worst week since mid-March

On Friday, the 15th of May 2020, a gauge of European stock indices had rounded off the day marginally higher, but had scored their worst weekly plunge since mid-March, as a latest escalation in US-China trade spat that had been bolted out of the blue, was keeping a raft of European investors on their toes, stoking frets of a bleaker-than-anticipated ‘Financial Depression’.

In point of fact, Friday’s (May 15th) gains of the European stock indices were almost entirely catapulted by a better-than-expected industrial production in China, which grew by 3.9 per cent last month on a year-on-year basis, eventually lifting up the mining stocks of regional pan-European STOXX 600 as much as 2.8 per cent higher, while the STOXX 600 had winded up the day 0.5 higher.

Apart from that, despite a fairly upbeat beginning of the day, many European stock indices pared a lion-share of their gains on the late-afternoon session following reveal of a new decree by the United States especially crafted to curb out Huawei Technologies’ access on global semiconductor industry, which in effect had led to a 3.8 per cent in weekly decline for STOXX 600.

Meanwhile, adding eurozone stimulus hope had been cheering up investors’ confidence lately, which would likely to be shortlived, an analyst at Tavira Securities, Keith Temperton said on Friday’s (May 15th) European market wrap up, “The market is torn between stimulus, new infections and economic data.

The data is bad, but the stimulus is outweighing it for now. But I don’t imagine it’s going to last. ” Citing statisitcs, on Friday’s (May 15th) market closure, European markets had curtained off the day in an upbeat note with Frankfurt’s Dax leading the region, as London’s FTSE 100 gained 1.01 per cent to 5,799.77, French CAC 40 added 0.11 per cent to 4,277.63, and Frankfurt’s DAX had climbed 1.24 per cent to wrap up the day at 10,465.17.

Elsewhere in the Europe, Madrid’s benchmark IBEX 35 shed 1.08 per cent to 6,474.90, while Italy’s FTSE MIB ended down the day almost flatlined at 16,852.35.