European shares extend gaining streak on hopes of more US stimulus

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European shares extend gaining streak on hopes of more US stimulus

On Wednesday, a basket of European stock indices had registered their second consecutive day of gains, as prospects of further fiscal stimulus from the US Government alongside hopes of a rebound in global economy following the holocaust in April, had outweighed frets of a pandemic resurgence.

In point of fact, latest leg of rallies of the European stock indices was almost entirely prodded by the Trump Administration’s plan to administer another $1 trillion into the US economy as part of an investment in infrastructure, while following a strong gain recorded on the previous session, the regional pan-European STOXX rose by 0.7 per cent on Wednesday.

On top of that, a majority of European stock indices but travel and tourism stocks had rebounded vigorously over the recent weeks after a catastrophic April, mostly buoyed up by the reveal of havoc-scale stimulus packages from both EU and the United States, while the regional pan-European STOXX 600 has now been 15.7 per cent below of its all-time high nailed on February.

Global recovery seems to be at play as European stocks outperform US equities

Citing statistics, on Wednesday’s European market wrap-up, European market finished broadly higher, while French CAC 40 surged 0.88 per cent to 4,995.97, Frankfurt’s DAX gained 0.54 per cent to 12,382.14, and London’s FTSE 100 rose by 0.17 per cent to 6,253.25.

Elsewhere in the Europe, Madrid’s benchmark IBEX 35 ended up the day down by 0.22 per cent to 7,478.70, while Italy’s FTSE MIB had also faltered by 0.20 per cent to round off the day at 19,585.89.

Besides, referring to a global-scale recovery after an ease in forced lockdown measures, a chief strategist at Principal Global Investors in London, Seema Shah said on Wednesday’s European market wind down, “It just speaks to evidence that a global recovery seems to be at play, given that European equities seemed to have underperformed U.S.

equities recently. What everyone is hoping for is that you get a return to growth which is driven by more confident consumer behaviour but if you have another (virus) outbreak, even if there is no lockdown, it starts to weigh on people’s minds.