A basket of European bourses had finished higher on Friday and marked weekly percentage gains with Frankfurt-listed DAX leading the region, as European investors seemed more focused on an unexpectedly supportive earnings season, while another set of improved eurozone economic data had led to market participants’ beliefs that a quicker-than-anticipated recovery from the pandemic induced slump in Europe could offset impacts of a growing US-China tension less than three months before the US 2020 Presidential election with Democratic candidate Joe Biden dominating the voting polls by a clear-cut margin.
In point of fact, pandemic stimulus bills appeared to have played a pivotal part on Friday’s rally in a raft of European stock indices despite a hesitant opening of the day, as the tech and telecom stocks had lifted European bourses up in a late-session rally.
As beforementioned, main European indices had spent the morning session in a downbeat texture following US President Donald Trump’s ban on US transactions with the owners of messaging app WeChat alongside small video sharing app TikTok, however, markets were stabilized at the later part of the day as the region’s technology index .SX8P gained over 1 per cent.
Besides, following further gains from telecom index .SXKP alongside healthcare stocks, the regional pan-European STOXX 600 had winded down the day 0.3 per cent, marking up a weekly percentage gain of 2 per cent with Frankfurt’s DAX, London’s FTSE 100 and French CAC 40 all clocking weekly rises.
With the bulk of earnings’ season is over, relieved investors hold forth on cautious bets
Quoting statistics, Frankfurt’s DAX rose by 0.66 per cent to 12,674.88 following a 2.7 per cent rise in Deutsche Telekom and French CAC 40 added 0.09 per cent to 4,889.52, while London’s FTSE 100 had augmented 0.09 per cent to wrap up the day at 6,032.18.
Elsewhere in the Europe, Italy’s FTSE MIB soared 0.21 per cent to 19,516.43, while Madrid’s benchmark IBEX 35 closed the day 0.11 per cent lower to 6,950.50.
Meanwhile, addressing that a lion-share of European majors had exceeded analysts’ forecast and eventually polished investors’ morale to go through cautious bets, several analysts remained upbeat regarding the current-quarter outlook for European stocks, though a stronger euro that sails over the slump of a two-year low American Dollar Index (DXY) could limit gains.