On Tuesday, a basket of European bourses had rounded off the day near three-week highs, as a growing optimism over United States’ second pandemic relief bill alongside encouraging signs of economic recovery from China and Germany had catalysed the gains of growth-linked cyclical stocks such as financials, automakers and travel & leisure.
In point of fact, Tuesday’s rally in the Wall St. was almost entirely galvanized by an improved investors’ morale due to a series of upbeat economic data including a 16.4 per cent surge in auto sales in China, while other hard-hit sectors from the pandemic gained largely due to the market whispers regarding a likely US pandemic relief bill.
China auto sales, improved eurozone data amp up investors’ appetite for the stocks battered hard during pandemic Aside from that, following reveal of the China data that shown a 16.4 per cent rebound in sales last month, automakers stock index in Europe roared back and surged as much as 4.4 per cent, while a ZEW survey revealing investors’ sentiment in Germany rose more than expected in August, had reflected optimisms that the eurozone’s No.
1 economy had been recovering from that pandemic induced slump.
Decent uptick in economic growth helps eurozone stocks clock a robust rally
Citing statistics, on Tuesday’s European market closure, London’s FTSE 100 surged 1.48 per cent to 6,136.24.
and French CAC 40 jumped 2.70 per cent to 5,029.82, while Frankfurt’s DAX climbed over 2 per cent to 12,948.45. Elsewhere in the Europe, Italy’s FTSE MIB surged over 3 per cent to 20,187.48, while Madrid’s benchmark IBEX 35 wrapped up the day just shy of 3 per cent to 7,249.50.
Besides, adding that the session’s rally was largely galvanized by a pick-up in growth momentum in China and Europe, a Chief Global strategist at wealth manager Brewin Dolphin, Paul Danis said on the day’s European market wrap up, “There has been a decent tick-up in economic growth momentum, and earnings for some of the cyclical sectors have come in better than expected.
There is a good reason to believe that some of the beaten-down value names could pick up. But it does make sense to have bias for the mega-cap growth names. ”