European bourses log third straight week of gain on commodity rally, vaccine hope

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European bourses log third straight week of gain on commodity rally, vaccine hope

A basket of European bourses had rounded off the day in an affirmative territory of Friday with regional benchmark pan-European STOXX 600 recording its third consecutive weekly gains as an upsurge in commodity-associated stocks had helped weather the worries of a second wave of pandemic outbreak.

On top of that, as US-based drugmaker Pfizer Inc. has been set to file for US FDA authorization for its pandemic vaccine as soon as late on Friday, European investors seemed to be looking beyond the latest leg of impasse over a new US fiscal stimulus.

Apart from that, a media report released earlier in the day saying the EU Commission had been preparing to spend as many as $10 billion for tens of millions of shots of vaccines from Pfizer Inc. alongside Sinovac, had stepped up investors’ optimism of a downsized fiscal impact from the latest leg of pandemic restrictions.

European shares jump on commodity-stocks’ rally

In point of fact, it had been the commodity stocks which acted as a major market mover on Friday, as an intensifying bet on pandemic vaccines as early as late in December this year had heightened up demand optimism for industrial commodities such as oil, natgas and copper, while the European oil & gas index rose 1.5 per cent after successful vaccine trials of Pfizer Inc.

and Moderna with metal prices rallying across the board over a persistence demand surge from top consumers likes of China. Citing statistics, European markets rounded off broadly higher on Friday with Italy’s FTSE MIB leading the region, while London’s FTSE 100 gained 0.27 per cent, French CAC 40 rose by 0.39 per cent and Frankfurt’s DAX soared 0.39 per cent.

Elsewhere in the Europe, Italy’s FTSE MIB climbed 0.79 per cent to 21,706.96 and Madrid’s IBEX 35 added 0.60 per cent to 7,977.90, while STOXX 600 had clocked a weekly gain of 0.70 per cent to 389.35. Meanwhile, citing cautious optimism over the gains of European bourses, a senior market analyst at IG, Joshua Mahony said, “European markets are gradually gaining ground, with vaccine hopes being counteracted by U.S. stimulus and lockdown fears.