European shares snap three-day long losing run on upbeat economic data

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European shares snap three-day long losing run on upbeat economic data

On Friday, a basket of European bourses had ended down the day sharply higher following reveal of an upbeat industrial output data from Italy alongside a survey report showing a quicker-than-anticipated economic recovery on the bloc’s second-largest economy, France, however, a large-scale spike in pandemic cases across the globe except Central Europe had kept a lid on the gains.

As a matter of fact, upbeat data from France and Italy coupled with a positive clinical trial result for Gilead Sciences Inc.’s pandemic drug Remdesivir had tuned up the tone on Friday’s European market, while Milan indices were boosted by a report revealing a rise in industrial output by 42.1% in May compared to a month earlier, while the French CAC 40 posted its first gain in four sessions after official data had revealed that the productions at French factories, mines and water-treatment plants had climbed by 19.6 per cent in May compared to a month earlier.

Comforting production & retail sales data in May raise hopes of an earlier recovery

Citing statistics, on Friday’s European market closure, Frankfurt’s DAX rose by 1.16 per cent to 12,633.71, while French CAC 40 surged 1.01 per cent to 4,970.48 and London’s FTSE 100 gained 0.76 per cent to 6,095.41.

Elsewhere in the Europe, Madrid’s IBEX 35 climbed 1.16 per cent to 7,321.10, while leading the gains in the bloc, Italy’s benchmark FTSE MIB jumped 1.34 per cent to wrap up the day at 19,767.60.

Meanwhile, referring to a flurry of upbeat economic data from the eurozone including the Macron & Co.’s remark that the French economy might be improving at a much better pace than anticipated, a senior economist for EMU, Italy, Greece at ING, Paolo Pizzoli, said on Friday’s European market wind down, “The last batch of hard data is somewhat comforting.

Both production and retail sales data for May have shown that reopening after the strict lockdown was quick. This should, in principle, reduce the risk of an extreme GDP contraction in the second quarter.