On Thursday, a basket of European bourses had rounded off the day in a fairly upbeat note, as more fiscal support from the European Central Bank alongside yesterday’s IHS Markit PMI data had bolstered investors’ sentiment, while a giant leapfrog of Lufthansa shares’ prices following potential advancement to break its stand-off with the German Government over a €9 billion in bailout package had lifted market moods.
Besides, although a latest leg of EU-US dispute over added duties on EU-borne products had been straining investors’ hope of a quicker recovery from the pandemic-led slump, followed by the reveal of an innovative ECB move to offer debts to eurozone Central Banks against their collaterals on non-EU assets, had led to a torrential momentum for a number of European stock indices.
Aside from that, a climb of 7.1 per cent in Lufthansa shares’ prices after billionaire investors Heinz Hermann Thiele had removed his objection on the €9 billion financial lifeline to the German airline, had offset the ramifications of Wirecard AG shares’ prices, that filed for an insolvency on Thursday after acknowledging its missing €2 billion from 2019 balance sheet had never existed, eventually leading to a plunge of 71.28 per cent.
Europe gains on ECB’s surprise move, eurozone PMI data
Aside from a flabbergasting move from ECB to offer fresh aids in form of debts to the Central Banks against collaterals outside the bloc, yesterday’s IHS Markit PMI data that shown a substantial scale of improvement in eurozone economy last month kept supporting a number of cyclical stocks, while financial stocks climbed following the ECB announcement.
Citing statistics, on Thursday’s European market wind down, all major European indices had registered modest gains, while London’s FTSE 100 rose by 0.38 per cent to 6,147.14, French CAC 40 surged 0.97 per cent to 4,918.58 and Frankfurt’s DAX climbed 0.69 per cent to 12,177.87.
Elsewhere in the Europe, Italy’s FTSE MIB soared 0.37 per cent to 19,234.75, while Madrid’s benchmark IBEX 35 jumped 1.04 per cent to wrap up the session at 7,270.30.
Meanwhile, adding that the surprise ECB move had led to the rallies on Thursday’s European market, an analyst at Bannockburn Global Forex, Marc Chandler said, “The ECB took a fresh initiative today that caught the market by surprise and is helping lift financial shares today. ”