On Friday, a basket of European bourses had pared earlier losses and wrapped up the session in an upbeat tenure, as encouraging forecasts from Dutch chipmaker ASML and cosmetic industry giant L’Oreal had brightened up outlook for a near term recovery from the pandemic-inflicted wounds, though a drag in Volkswagen’s January delivery had weighed on Frankfurt’s DAX.
Apart from that, market participants’ optimisms that another round of trillion-dollar stimulus bill from a Biden Administration would help revive a pandemic-battered global economy, added to further bullish wings.
Nonetheless, the week’s gains in the European bourses were almost entirely prodded by a number of strong quarterly results alongside upbeat profit forecasts for 2021. Dutch semiconductor industry giant ASML climbed as much as 3 per cent after the European chipmaker had said that an ongoing chip shortage, which has been disrupting the global automotive industry, had been a sign of a broad-based hike in demands, while the world’s largest cosmetics group L’Oreal had spiked to its three-month high after forecasting a vigorous rebound in sales of makeup items this year.
European shares surge, post second straight weekly percentage gains
Citing statistics, in the day’s European market closure, the regional pan-European STOXX gained 0.6 per cent and hit a three-week high, securing a second straight week of percentage gains that largely mirrored an uprising in a slew of US Stocks, while London’s blue-chip index FTSE 100 surged 0.94 per cent to 6,589.79, French CAC 40 rose 0.60 per cent to 5,703.67, and Frankfurt’s DAX edged 0.06 per cent higher to 14,049.89.
Elsewhere in the Europe, Madrid’s benchmark IBEX 35 added 0.22 per cent to 8,055.00, while Italy’s FTSE MIB soared 0.44 per cent to 23,410.60. Meanwhile, addressing to investors’ hope over a trillion-dollar stimulus package from the US Government as early as by mid-March, an analyst at Spreadbetter Spreadex, Connor Campbell said, “We’re still not out of the woods...and the market is potentially overdue a reckoning.
Once the (U.S. stimulus) package has been implemented, it will be interesting to see how markets will behave, as they will no longer have this big thing to cling on to. ”