Europe surges for fourth straight session as EU stimulus outweighs Sino-US rift

by   |  VIEW 504

Europe surges for fourth straight session as EU stimulus outweighs Sino-US rift

On Thursday, a gauge of European stock indices reported robust gains for the fourth straight session in a row, mostly buoyed up by a growing investors’ optimism over a mammothlike eurozone stimulus package initially proposed by the French President Emmanuel Macron and the German Chancellor Angela Merkel, while a reopening of businesses alongside a decent rebound in tourism activities had overshadowed concerns linked to the latest leg of Sino-US spat.

In point of fact, the session’s gains of the European bourses were almost entirely catalysed by a sharp rebound of defensive stocks such as healthcare, personal & household goods, telecoms and utilities, while an upsurge of as much as 21.4 per cent of the UK-based cinema operator Cineworld had aided the regional pan-European STOXX 600 to anchor over a 11-week-peak.

European stocks extend gains on defensive bets, €750 billion stimulus package

Citing statisitcs, as a gradual recovery of the bloc’s economy alongside hopes of a potential pandemic vaccine has propelled the regional pan-European STOXX 1.6 per cent higher, almost all of the major European indices had winded down the market sharply higher with Italy’s FTSE MIB leading the charges.

Concomitantly, on Thursday’s European market wrap up, London’s FTSE 100 gained 1.21 per cent o 6.218.79 and Frankfurt’s DAX rose by 1.06 per cent to 11,781.13, while the French CAC 40 climbed 1.76 per cent to round off the session at 4,771.39.

Elsewhere in the Europe, Madrid’s benchmark IBEX 35 added 0.69 per cent to 7,224.10, while the Italy’s FTSE MIB surged as much as 2.46 per cent to wind up the session at 18.351.16. Meanwhile, citing that the session’s mood was vivified following introduction of an EU move to inject a magnanimous upsum of €750 billion into the bloc’s economy alongside hopes of an ECB (European Central Bank) move to expand a likely €500 billion worth of bond repurchase program as early as next week, a sovereign credit analyst at PIMCO said to a press agency on the session’s closing bell, “I think there’s a good chance they will expand their...

asset purchase program. The current purchase envelope will likely be exhausted before year end, and the ECB may want to start providing some more certainty that it remains in play beyond that.