A basket of European bourses had wrapped up the week at record highs on Friday as a slew of shares subject to Brexit exposure had shelved havoc-scale gains following a hawkish comment from a BoE (Bank of England) official, while the likelihoods of an increase in US spending plans following reveal of a gargantuan $6-trillion 2022 budget proposal from the White House, had added to a bullish bias on investors’ morale.
In point of fact, in the day’s broad-based gains in the European bourses were mostly led by an upward spiral of insurance and financial services stocks, while travel and leisure sector jumped more than 4 per cent, outperforming a raft of its regional peers, as several euro zone economies had significantly relaxed pandemic restrictions following an acceleration in vaccination drive.
Besides, a mammothlike $6 trillion budgetary proposal from the US President Joe Biden despite a sharp shoot-up in inflation indicators had muscled up investors’ optimism, while US investors had brushed aside the concerns related to an inflation-led rate hike following dovish remarks from US Fed Chair Jerome Powell, who had pledged to continue the US Central Bank’s monthly bond repurchase program earlier in the week.
European shares wind up month at record highs
Citing statistics, in the day’s European market closure, the regional pan-European STOXX 600 added 0.6 per cent to a record closing high of 448.98, while London’s FTSE 100 added 0.04 per cent to 7,022.61, French CAC 40 rose 0.75 per cent to 6,484.11 and Frankfurt’s DAX gained 0.74 per cent to 15,519.98.
Elsewhere in the Europe, Italy’s FTSE MIB feathered 0.45 per cent higher to 25,169.39, while Madrid’s benchmark IBEX 35 advanced 0.42 per cent to 9,224.60. On the week, London’s blue-chip index FTSE 100 added 0.22 per cent, French CAC 40 surged 1.39 per cent and Frankfurt’s DAX rose 0.71 per cent, while Italy’s FTSE MIB ended the week 0.97 per cent higher and Madrid’s IBEX 35 had wrapped up the week almost flatlined.
On the month, London’s FTSE 100 gained 0.76 per cent, French CAC 40 skyrocketed 3.42 per cent and Frankfurt’s DAX surged 2.54 per cent, while Italy’s FTSE MIB torrented 4.26 per cent and Madrid’s IBEX 35 spacedived as much as 4.65 per cent.
Meanwhile, referring to an alienation of inflation frets widely seen across money markets in the United States and Europe, a chief market analyst at IG, Chris Beauchamp said, “With May all but over apart from next Monday ...
the month is ending on a positive note, as strong momentum continues to carry markets higher while investors learn to acclimatise to an environment of higher inflation. ”