European bourses end week lower as banks cap chipmakers’ gains, delta variants weigh

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European bourses end week lower as banks cap chipmakers’ gains, delta variants weigh

On Friday, a basket of European stock indices had wrapped up the day in a mixed tenure with regional benchmark pan-European STOXX 600 gaining 0.3 per cent following a boost from the chipmakers, however, gains were largely eclipsed by a sharp downturn in financials and heavy-weight lenders, as a better-than-anticipated US non-farm payrolls data had botched to lift up analysts’ morale that a 10-month-peak job gains in June would not be adequate to yield a change of heart in US Fed policymakers.

On top of that, a resurgence in delta variant across South-east Asia, which the WHO Director General Tedros Adhanom claimed had already spread across more than 100 countries earlier in the day, added to further strains.

Nonetheless, benchmark STOXX 600’s semiconductor index rose 1.1 per cent on Friday following a 1.4 per cent and 2.5 per cent gain in the shares’ prices of chipmaker ASML Holding NV alongside ASM International NV respectively, while bank stocks soured 1.3 per cent.

Besides, the travel and leisure sub-sector climbed 1.6 per cent, but fell 1.4 per cent on the week as a pandemic-led renewed restriction in the UK had weighed heavily on market participants’ morale.

European shares end lower as delta variant frets dent recovery hopes

Citing statistics, in the day’s European stock market closure, London’s blue-chip index FTSE 100 inched 0.02 per cent lower to 7,123.27 and French CAC 40 fell 0.015 per cent to 6,552.86, while Frankfurt’s DAX added 0.30 per cent to wrap up the session at 15,650.09.

Elsewhere in the Europe, Italy’s FTSE MIB shed 0.014 per cent to 25,282.41, while Madrid’s benchmark IBEX 35 lost 0.28 per cent to 8,907.60. On the week, London’s FTSE 100 shed 0.18 per cent and French CAC 40 curbed 0.89 per cent, while Frankfurt’s DAX rose 0.51 per cent.

Italy’s FTSE MIB muzzled 1.07 per cent, while Madrid’s IBEX 35 dropped as much as 1.85 per cent. Meanwhile, citing that a resurgence of delta variant would more likely to dictate the European markets over coming days, a senior economist at TS Lombard wrote in a client note, “Inflation is still clients’ most popular risk to discuss at global level, but considering the European area’s delayed reopening, subdued wage growth and limited fiscal stimulus, the evolution of the Delta variant is a more pressing issue”.