European shares spike to all-time highs as miners shine, tech rebounds

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European shares spike to all-time highs as miners shine, tech rebounds

On Friday, a basket of European bourses had wrapped up the volatile week closer to their all-time highs with miners leading the charges, while a rebound of tech stocks over optimisms of a solid global economic recovery added to further bullish wind as investors appeared to have brushed aside the frets of a third wave of pandemic outbreak in Europe.

In factuality, European shares had been largely downtrodden earlier in the week following growing concerns over a third wave of pandemic outbreak that had forced major economies in the 26-member bloc such as France and Netherlands to re-impose stiffer lockdown measures, while a slower pace of vaccination in the euro zone had compounded the narratives further.

Nonetheless, despite a flurry of gloomier fundamentals, a raft of investors remained Panglossian over a stimulus-propelled recovery following disbursement of a $1.9 trillion stimulus package in the US, which in effect had brightened the outlook and helped European stock indices jump on later part of the week.

European shares end at all-time highs

In tandem, in the day’s modest rise in European shares were almost entirely driven by the gains of mining stocks such as oil and gas, while a sharp upswing in deep-pocket chipmakers likes of ASML and ASM International, assisted the regional pan-European STOXX 600 to register a weekly gain of 2.7 per cent, the index’s largest weekly percentage gain since early November.

Apart from that, although defensives such as healthcare and utilities had rounded off marginally lower, benchmark STOXX 600 scored a 0.8 per cent rise on Friday and marked up its fourth straight weekly percentage gain in a row.

Citing statistics, in the day’s European market closure, London’s FTSE 100 ended slightly lower to 6,703.83 and French CAC 40 shed 0.43 per cent to 5,972.15, while Frankfurt’s DAX rose 0.06 per cent to 14,629.23.

Elsewhere in the Europe, Italy’s benchmark FTSE MIB soared as much as 0.72 per cent to 24,393.26, while Madrid’s IBEX 35 torrented 1.05 per cent to wrap up the day at 8,498.20. Meanwhile, referring to a growing market optimism regarding a robust global economic recovery, BNP Paribas’ head of equity and derivative strategy for Europe, Ankit Gheedia said late in the day, “Ultimately – you still have abundant fiscal and monetary support as the economies open up. It’s the best time to be long equities.... with value as a longer-term trade”.