European stocks mark longest weekly winning streak since November 2019

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European stocks mark longest weekly winning streak since November 2019

On Friday, a basket of European bourses mostly treaded water with London’s blue-chip index FTSE 100 faltering slightly, though a majority of European stock indices had marked up their longest streak of weekly gains since November 2019, as hopes of a solid economic rebound alongside a two-decade peak euro zone manufacturing composite PMI (Purchasing Managers’ Index) released earlier, had overshadowed lingering concerns over the pace of Europe’s pandemic vaccination roll outs.

In point of fact, in the day’s European bourses remained mostly subdued as beforementioned, though in the week’s robust gains in a majority of European stock indices were almost entirely galvanized by a sharp pick-up in investors’ optimism about an earlier-than-anticipated economic recovery, while IHS Markit’s flash euro zone manufacturing PMI data that showed the index had hit its highest level in more than two decades last month, had helped market participants to look beyond a bleaker vaccination campaign in Europe against the pandemic pathogen.

On top of that, global sentiments were broadly supported by US Fed’s pledge of an accommodative monetary policy alongside a near-zero interest rate for an unforeseeable future as cited in US Fed’s Minutes’ report published earlier in the week.

Aside from that, despite a deluge of backlashes stemming from a sluggish pace of inoculation drive in Europe alongside an uncanny politicization of its vaccination programme, European stock indices had spiked to multiple record closing highs this week, mostly catapulted by investors’ optimism over a solid economic rebound as beforementioned.

Europe posts longest streak of weekly gains since Nov ‘19

Citing statistics, in the day’s European market round off, the regional pan-European STOXX 600 edged 0.1 per cent higher after hitting an all-time high earlier in the session, while over the week, benchmark STOXX 600 gained as much as 1.77 per cent.

Apart from that, London’s FTSE 100 fell 0.07 per cent to 6.703.83 and French CAC 40 shed 0.43 per cent to 5,972.15, while Frankfurt’s DAX added 0.06 per cent to wrap up the session at 14,629.23. Elsewhere in the Europe, Italy’s FTSE MIB took a header of 0.60 per cent to 24,429.41, while Madrid’s benchmark IBEX 35 closed out the day down by 0.83 per cent to 8,565,80.

Meanwhile, referring to a raft of speculative bets driving European shares to their all-time highs, a chief market analyst at IG, Chris Beauchamp said, “The year has been without a major correction so far, and with equity inflows continuing to hit new multi-year highs the sense of ‘irrational exuberance’ is building once again”.