On Friday, a slew of European stock exchanges had wrapped up slightly lower, though major stock indices had logged their strongest weekly percentage gains since November as a trillion-dollar stimulus package in the US alongside an acceleration in pandemic vaccination campaign had shored up optimisms of a robust economic recovery.
In point of fact, in the week’s swift upsurge in major European bourses was almost entirely catapulted by a tepid inflation data alongside a European Central Bank signal that it was psyched up to adopt necessary measures to put a kibosh on higher borrowing costs, while regional pan-European STOXX 600 reported a weekly percentage gain of 3.5 per cent, its strongest weekly performance in more than four months, nonetheless, the index had rounded off the session 0.3 per cent lower, snapping a straight four-session long streak of gains.
On top of that, as Treasury bond yields rose again in the US and Europe on Friday with US Treasury bonds hitting a fresh one-year peak of 1.64 per cent, market participants had jumped on the bandwagon of a weekend profit-taking sell-off wave.
European shares end lower, but report best weekly gain since November
Citing statistics, in the day’s European market closing bell, London’s blue-chip FTSE 100 added 0.36 per cent to 6,761.47 and French CAC 40 rose 0.21 per cent to 6,046.55, while Frankfurt’s DAX dwindled 0.46 per cent to round off the session at 14,502.39.
Elsewhere in the Europe, Madrid’s benchmark IBEX 35 climbed 0.60 per cent to 8,644.50, while Italy’s FTSE MIB edged 0.03 per cent lower to 24,113.22. Meanwhile, referring to dovish ECB remarks alongside a historic $1.9 trillion in US stimulus package, a senior eurozone economist at ING, Bert Colijn said, “On one hand, we had the ECB that tried to talk down yields, but at the same time we had the final approval of the big Biden stimulus package that drove U.S. yields somewhat higher again”.