European shares retreat, log first weekly plunge in eight

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European shares retreat, log first weekly plunge in eight

On Friday, a swathe of European stock indices had beaten a hasty retreat, snapping a seven-week long streak of weekly percentage gains as a pandemic resurgence in major G20 economies including India and Japan had eclipsed optimisms of a robust earnings season.

Nonetheless, Madrid-based Allfunds climbed at its Amsterdam debut. In point of fact, in the day’s broad-based weakness in a slew of European stock indices seemingly had stemmed from a Thursday media report that said the US President Joe Biden would unveil a proposal to nearly double up taxations on wealthy American individuals earning more than $1 million, sending shockwave across global equity markets over frets that Biden’s proposal could lead to a mass-scale capital outflows from equity markets.

Aside from that, despite a better-than-anticipated eurozone composite PMI (Purchasing Managers’ Index) data released earlier in the day, market landscape in Europe remained gloomier as a pandemic resurgence in India and Japan had stoked worries of a delay in economic rebound from the pandemic’s fiscal consequences.

Nevertheless, the regional pan-European STOXX 600 shed 0.2 per cent, stomaching a weekly percentage loss of 0.8 per cent, as defensives led the tally of losses with consumers stocks bearing the heaviest brunt, however, a rebound in crude oil prices alongside other precious commodities led to an upsurge of mining stocks.

European shares end sharply lower, post first weekly drop in eight

Citing statistics, in the day’s European market closure, London’s blue-chip FTSE 100 ended nearly flatlined at 6,938.56 and French CAC 40 wrapped up 0.15 per cent lower to 6,257.94, while Frankfurt’s DAX dwindled 0.27 per cent to 15,279.62.

. Elsewhere in the Europe, Italy’s FTSE MIB faltered 0.05 per cent to 24,386.09, while Madrid’s IBEX 35 shrugged off 0.44 per cent to 8618.50. Meanwhile, addressing to the fiscal fallouts of a third wave of pandemic outbreak which would more likely to inflict deeper wounds than those of last year’s given the scale of transmissibility of newer pandemic variants, a senior investment and market analyst at Hargreaves Lansdown, Susannah Streeter said, “We’ve fears of a third wave of infection in many parts of the world. That sis going to keep acting as a drag on how far indexes will grow”.