On Friday, a basket of European bourses had walked away with handsome gains and reported their best sessions in two months while obliviating some of this week’s losses as market participants seemed to have jumped on the bandwagon of a bullish cohort following one of the worst sell-offs this year.
Apart from that, after taking a tattering header earlier in the week over frets of the pace of global economic recovery amid a rise in delta variants alongside a decline in the ZEW index for German investors’ morale, the regional pan-European STOXX 600 soared as much as 1.3 per cent with automakers and miners gaining 4 per cent and 3.4 per cent respectively, as mining sector had marked off its best session in more than two months.
Nevertheless, in the day’s steep gains in European bourses appeared to be galvanized by a bargain-hunting spree as a swathe of European stocks became more affordable following a seesaw week that had witnessed a rise in pandemic cases, an irksome eeriness in US-China relationship alongside an upsurge in Treasury bond Yields.
Aside from a torrential rise in benchmark STOXX 600, French stocks had clocked a meteoric rally with CAC 40 rising by the most in more than four months, leading the charges among major European stock indices.
European shares surge, pare some of weekly losses
Citing statistics, in the day’s European market closure, London’s blue-chip FTSE 100 soared 1.30 per cent to 7,121.88, French CAC 40 climbed as much as 2.07 per cent to 6,529.42, while Frankfurt’s DAX gained 1.73 per cent to 15,687.93.
Elsewhere in the Europe, Italy’s FTSE MIB rose 1.67 per cent to 25,051.82, while Madrid’s benchmark IBEX 35 jumped 1.46 per cent to 8,776.60. On the week, London’s FTSE 100 shed 0.02 per cent, French CAC 40 lost 0.25 per cent and Germany’s DAX added 0.38 per cent, while Italy FTSE MIB muzzled 0.57 per cent and Madrid’s IBEX 35 dropped 1.37 per cent.
Meanwhile, referring to a growing investors’ uncertainty about the pace of global economic recovery, a CMC Markets analyst Michael Hewson wrote in a client note, “This sort of angst is nothing new for markets.
However, the slide in yields is telling us that the recovery is either in trouble, or merely being delayed. Much is likely to depend on the vaccine rollout plans, and the speed with which it can be rolled out in the countries where cases are rising sharply”.