European shares reap a third straight week of gains on strong earnings, positive data



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European shares reap a third straight week of gains on strong earnings, positive data

On Friday, a slew of Eurozone stocks had wrapped up the day on cloud nine, remarking their third straight weekly percentage gains, as euro zone data published earlier in the day had revealed that the region’s factory activity had leapfrogged to a fresh three-year peak in February, while a barrage of riant quarterly earnings’ reports had buoyed up investors’ morale over a broader economic recovery in a near term.

The Eurozone equity index rounded off the day 0.9 per cent higher following strong quarterly earnings’ report from deep-pocket conglomerates likes of Acciona and Hermes, spurring up hopes of an inflection point that could eventually prompt up an economic recovery from the pandemic-inflicted fiscal wounds, while the regional pan-European STOXX 600 ended 0.5 per cent higher, largely moved by a stronger-than-anticipated factory activity data.

On top of that, apart from a three-year high regional factory activity as reported by a euro zone survey data, other fiscal readings have unveiled that the 26-member bloc’s current account surplus rose in December amid a steep downturn in import-associated expenses, largely due to a global-scale ban on international travels.

European shares make small gains in the week as whispers louden over rising inflation

Citing statistics, in the day’s European market wind down, major European bourses closed out sharply higher, while London’s blue-chip FTSE 100 added 0.10 per cent to 6,624.02, French CAC 40 jumped 0.79 per cent to 5,773.55 and Frankfurt’s DAX added 0.77 per cent to 13,993.23.

Elsewhere in the Europe, Italy’s FTSE MIB gained 0.94 per cent to 23,136.31, while Madrid’s benchmark IBEX 35 surged as much as 1.16 per cent to round off the session at 8,151.60. In the week, London’s FTSE 100 added 0.82 per cent, French CAC 40 jumped 0.9 per cent, while Frankfurt’s DAX remained almost dithered.

Meanwhile, citing that the ECB (European Central Bank) would highly likely to keep its monetary policy dovish at least until end-2021 in a bid to bolster business spending, a senior market analyst at OANDA, Jeffrey Halley said, “This week’s slightly adverse price action has all the hallmarks of a loss of momentum temporarily and not a structural turn.

There is not a major central bank in the world thinking about taking their foot off the monetary spigot, except perhaps China. (Markets) will remain awash in zero percent central bank money through all of 2021 (and) a lot of that will head to the equity market.