European shares eke out biggest weekly gains since early-November



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European shares eke out biggest weekly gains since early-November

On Friday, a basket of European bourses had wrapped up the session almost flatlined, though a raft of European stock indices had winded up the week in a riant complexion as disappointing US labour market data had stoked hopes of a large-scale stimulus package which analysts claimed could herald a global economic recovery from the pandemic-inflicted fiscal wounds.

Nonetheless, Friday’s halt in a maverick rally of a slew European stock indices was largely goaded by a flurry of key fundamentals, while Frankfurt’s DAX dwindled after Government data had shown that new orders for German-borne core capital goods fell in January after a seven-month long streak of gains.

Besides, a stronger pound had weighed on London’s blue-chip index FTSE 100, though an offbeat non-farm payrolls data in the United States had lifted up investors’ hope of a large-scale stimulus package, eventually keeping a lid on the losses.

Apart from that, late in the day, US Congress had passed a budgetary bill that in effect would enable a Biden Administration to install as many as $1.9 trillion in fresh capital inflows in order to grapple with the pandemic’s fiscal fallouts without the supports of Republican lawmakers, ramping up investors’ appetite for riskier assets which in turn had helped European stock indices cushion up the fiscal blows stemmed off the recent leg of stiffer pandemic restriction measures.

European shares score best weekly gain since early-November

Citing statistics, in the day’s European market closure, regional pan-European STOXX 600 reported a weekly percentage gain of 3.5 per cent despite an almost dithered trading session on Friday with gains in riskier assets such as travel and leisure stocks having been countered by the losses in defensive stocks likes of cyclical goods, healthcare and utilities.

Besides, as European shares had mostly treaded water in the last day of an upbeat week, London’s FTSE 100 shed 0.22 per cent to 6,489.33, marking up its third straight session of losses that was mostly catalysed by a stronger British currency, while Frankfurt’s DAX faltered 0.03 per cent to 14.056.72.

Elsewhere in the Europe, Italy’s FTSE MIB climbed 0.80 per cent to 23,083.42, while Madrid’s benchmark IBEX 35 jumped 1.13 per cent to 8,214.70. Meanwhile, referring to an uptick in investors’ morale over stimulus hopes, a senior market analyst at OANDA, New York, Edward Moya said, “The prospect of more stimulus remained elevated.

Any profit-taking should be limited”.