On Friday, a basket of European stock indices had wrapped up the week sharply lower despite a rebound in pandemic-hit travel and tourism stocks, while a laundry of upbeat earnings’ reports had allayed concerns over an increase in delta variants across the region, helping major European indices pare some of their earlier losses.
With travel and leisure stocks gaining as much as 1.1 per cent a couple of days before the United Kingdom has been set to remove pandemic-led restrictions, the regional pan-European STOXX 600 added 0.1 per cent and wrapped up the week almost flatlined.
Fleshing up travel and leisure stocks further, the US President Joe Biden was quoted saying later this week that the United States had been reviewing when it could lift bans for non-US citizens travelling to the US from several regions in Europe.
However, earlier in the week, European bourses had beaten a hasty retreat amid concerns over a higher inflation alongside an increase in delta variant, however, the US Fed Chair Powell’s intransigent stance on a dovish monetary policy as cited in a Congressional hearing this week had eased off worries up to some extent, but had botched to prevent a steeper downward spiral over the week.
European shares end sharply lower; travel stocks rebound
Citing statistics, in the day’s European market closure, London’s blue-chip FTSE 100 ended the session 0.05 per cent lower to 7,008.09 and French CAC 40 shed 0.51 per cent to 6,460.08, while Frankfurt’s DAX dwindled 0.57 per cent to 15,540.31.
Elsewhere in the Europe, Italy’s FTSE MIB muzzled 0.33 per cent to 24,792.78, while Madrid’s benchmark IBEX 35 had closed out the session 0.24 per cent lower to 8,506.20. On the week, London’s FTSE 100 lost 1.6 per cent, French CAC 40 dropped 1.0 per cent and Frankfurt’s DAX faltered 0.86 per cent, while Italy’s FTSE MIB had shrugged off 1.06 per cent and Madrid’s IBEX 35 had been hit with a hefty whiplash of 3.29 per cent.
Meanwhile, referring to a mixed set of economic data last week including a softer factory activity in China, a senior economist at the International business of Federated Hermes, Silvia Dall‘Angelo said, “Markets have largely moved sideways this week, reflecting some cross-currents.
On one hand, a strong start to U.S. Q2 earnings season and dovish rhetoric from central banks continued to provide support. On the other hand, several factors have weighed on the outlook, including weaker activity data out of China, signs that growth and earnings have peaked... ”