European shares notch new highs, post 7th straight weekly gain as Daimler lifts autos

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European shares notch new highs, post 7th straight weekly gain as Daimler lifts autos

On Friday, a basket of European bourses had wrapped up the session modestly higher with a majority of European stock indices closed at record highs, hovering near their pre-pandemic levels as a swathe of strong economic data in the United States and China had stepped up optimisms of an earlier-than-anticipated economic recovery.

Aside from that, upbeat quarterly earnings’ report from German automotive giant Daimler AG, had led the gains in automakers. In point of fact, in the day’s modest rally in European shares that largely echoed a broad-based gain in MSCI’s gauge of global equity indices and helped a raft of European stock indices rack up their seventh straight weekly percentage gains, was almost entirely prodded by market participants’ hope of a solid economic recovery following upbeat economic data from the US and China, while China reported more than 18 per cent GDP (Gross Domestic Product) growth on first quarter of 2021 and US retail sales surged by the most in ten months in March.

On top of that, German automaker Daimler AG’s robust quarterly earnings report underscoring an abrupt demand-surge in China, had lifted the wider automobile & parts index as much as by 2.1 per cent, while a steep plunge in US first-time initial jobless claims had spurred up the likelihoods of a vigorous rebound in US labour market, rekindling European traders’ confidence further.

European shares end week at record closing highs

Citing statistics, on Friday’s European market round off, the regional pan-European STOXX 600 jumped 0.8 per cent to hit an all-time high alongside Frankfurt’s DAX that soared as much as 1.3 per cent.

Aside from that, London’s FTSE 100 gained 0.5 per cent, wrapping up the session at more than a one-year peak, while French CAC 40 skyrocketed 0.85 per cent to 6,287.07. Elsewhere in the Europe, Italy’s benchmark FTSE MIB rose 0.88 per cent to 24,744.38, while Madrid’s IBEX 35 added 0.49 per cent to 8,613.50.

On the week, benchmark STOXX 600 gained 1.25 per cent, while Frankfurt’s DAX 30 mushroomed 1.34 per cent and French CAC 40 notched a weekly gain of more than 2 per cent. Madrid’s IBEX 35 and Italy FTSE MIB, in tandem, had shelved 0.7 per cent and 1.32 per cent respectively in weekly gains.

Meanwhile, addressing to an upbeat opening of earnings’ season with strong turnovers in both corporate and economic fronts, a chief market analyst at IG, Chris Beauchamp, said, “The good news continues to flow of both the corporate and economic fronts, after a very good start to the reporting season by the banks over the past few days. Now the focus becomes broader, taking in a wider range of sectors”.