European shares wrap at record highs as soft US payrolls hit tapering bet

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European shares wrap at record highs as soft US payrolls hit tapering bet

A basket of European bourses had rounded off the week at record highs as a softer-than-anticipated US employment data had allayed investors’ palpitation on a plausible tapering of fiscal supports from the US Federal Reserve, while growing optimism about a euro zone economy which remains resilient against a pandemic-led downturn since the inception of an acceleration in vaccination drive across the region, had spiralled most sectors upwards.

In point of fact, in the day’s European stock indices were almost entirely influenced by a softer-than-expected US job data released earlier on Friday, which seemingly had turned down concerns regarding a probable policy shift from the US Federal Reserve, while tech stocks regained momentum and led the day’s uprising with Austrian chipmaker AMS priming the charges.

Besides, the regional pan-European STOXX 600 gained 0.4 per cent to hit a record closing high of 452.57 after spiking to an all-time peak of 452.71 earlier in the session, as the index added 0.8 per cent on the week.

European shares end at record closing highs

Quoting statistics, on Friday’s European market closure, London’s FTSE 100 added 0.06 per cent to 7,069.04 and French CAC 40 rose 0.12 per cent to 6,515.66, while Frankfurt’s DAX gained 0.39 per cent to 15,692.90.

Elsewhere in the Europe, Madrid’s IBEX 35 edged 0.59 per cent lower to 9,088,30, while Italy’s FTSE MIB climbed 0.46 per cent to 25,570.46. On the week, FTSE 100 climbed 0.70 per cent, CAC 40 rose 0.50 per cent and Frankfurt’s DAX spiked 1.27 per cent higher, while Madrid’s IBEX 35 shed 1.4 per cent and Italy MIB FTSE jumped as much as 1.46 per cent in the week.

Meanwhile, signalling a dovish ECB policy stance in a near term outlook with interest rates weighing heavily on Government bond yields, but bidding well for equity indices, BCA Research analysts wrote in a client note, “It is too soon for the ECB to begin even hinting at any form of monetary tightening, even with economic growth improving.

While headline inflation pushed above the central bank’s 2% target in May, core inflation only rose to 0.9%.