On Friday, a basket of European bourses had clocked their fourth straight weekly percentage gain as investors appeared to be pre-determined to look beyond a basket of baleful near-term fundamentals stemming from the pandemic-led damages with vaccine hopes rising in the horizon, while Spanish lender BBVA climbed as much as 4 per cent following announcement that its merger talks with the loss-making regional rival Sabadell had botched to bear fruits.
On top of that, as a number of energy stocks had been leading the week’s rally with tech and bank sectors reporting a robust upsurge as well over optimisms that a vaccine shot might be available in days, the regional pan-European STOXX 600 had rounded off the session 0.4 per cent higher.
For the week, STOXX 600 gained just a notch shy of 1 per cent.
European shares log fourth straight week of gains on vaccine hopes
In point of fact, this week’s rally in major European stock indices came against the backdrop of a number of downbeat economic data such as a grievous rise in pandemic cases across the Europe alongside a fall in eurozone economic sentiment for the first time in seven months, as market participants were mostly driven by the hopes of an economic recovery as early as by early-2021.
Citing statistics, on Friday’s market wind down, European shares ended modestly higher with French CAC 40 leading the tally of the gains with a rise of 0.56 per cent, while Frankfurt’s DAX rose by 0.37 per cent and London’s FTSE 100 added 0.07 per cent.
Elsewhere in the Europe, Madrid’s IBEX 35 climbed 1.06 per cent, while Italy’s FTSE MIB soared 0.68 per cent.
Meanwhile, adding that the European investors had been heavily betting on an economic recovery in a near-term outlook, an ETX Capital analyst, Michael Baker said, “Investors have looked past the near-term risks and placed their bets on faster economic growth next year with the market turning more bullish even at the slightest of ease in restrictions coupled with expectations of more stimulus in case things go wrong. ”