On Friday, a basket of European bourses had rounded off the first week of 2021 in an upbeat tone, clocking their strongest weekly percentage gain since November 2020 as Frankfurt’s DAX hit a record closing high following better-than-anticipated economic data alongside a raft of riant quarterly earnings’ reports from the chipmakers, while a gradual waning of political tension in Washington coupled with prospects of smoother transition of power by January 20, had stoked hopes of a larger fiscal stimulus alongside a quicker-than-anticipated recovery of global economy from the pandemic-induced slump.
On top of that, Friday’s record-smashing gain in a gauge of European bourses was almost entirely goaded by a heightening up of hopes that a Democrat-led both chambers of the US Congress would lead to a large fiscal stimulus package while de-escalating trade tensions with the United States’ major trading partners such as European Union, the 26-member pact of market-oriented European economies.
Alongside this, optimism over a mass-scale rollout of pandemic-vaccine had stepped up money markets’ all over the globe on Friday with the US and Asian equity indices skyrocketing to their all-time highs. Concomitantly, followed by the release of a raft of upbeat economic data including an upsurge in industrial output in Germany in November last year, Frankfurt’s DAX had largely outperformed its regional peers and wrapped up the day 0.6 per cent higher, helping the regional pan-European STOXX 600 to wind up the day 0.7 per cent higher.
On the week, STOXX 600 surged as much as 3 per cent, marking up its largest weekly percentage gain since November 2020.
European shares end sharply higher on upbeat data, Democrat sweep in US Senate
Citing statistics, in the day’s European market wind down, London’s blue-chip index FTSE 100 added 0.24 per cent to 6,873,26 and French CAC 40 rose 0.65 per cent to 5,706.88, while Frankfurt’s DAX climbed 0.58 per cent, rounding off the day at a record closing high of 14,049.53.
Elsewhere in the Europe, Madrid’s benchmark IBEX 35 soared 0.26 per cent to 8,407.70, while Italy’s FTSE MIB advanced 0.21 per cent to curtail the day at 22,793.94. Meanwhile, addressing to a sharp turnaround of the bloc’s No.
1 economy later last week with exports rising more than anticipated in November last year, an ETX Capital analyst Michael Baker said, “Germany is the powerhouse in Europe. If you get data out with value, especially at these uncertain times, that is going to push prices up and that seems to be what is happening now”.