Upbeat corporate earnings heave European shares to record closing highs

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Upbeat corporate earnings heave European shares to record closing highs

On Friday, a basket of European bourses had closed out the session at all-time closing highs following an ECB (European Central Bank) policy meet that had hinted an utterly dovish monetary policy for a longer duration as delta variants seemed to have backpedalled a barrage of major economies in the 26-member eurozone, while growing optimism over an upbeat earnings’ season following an ease of pandemic-led curbs had added to further bullish bias.

In tandem, with hopes of a solid economic recovery outweighing the risks of a rapid rise in delta variants, the regional Pan-European STOXX 600 surged as much as 1.1 per cent to a record closing high, shelving more than 1.5 per cent in weekly gains as automakers had led the tally of gains.

In factuality, apart from a hasty retreat on Monday, a slew of European stock indices had mostly experienced a bullish wind throughout the week, as a dovish ECB policy outlook added fresh impetus, while optimisms over a similar policy stance from US Fed next week had feathered major European indices further.

European stocks end week at record highs after dovish ECB

Citing statistics, in the day’s European market closure, London’s blue-chip FTSE 100 rose 0.85 per cent to 7,027.58 and French CAC 40 gained 1.35 per cent to 6,568.82, while Frankfurt’s DAX jumped 1.00 per cent to 15,669.29.

Elsewhere in the Europe, Italy’s FTSE MIB surged 1.29 per cent to 25,124.91, while Madrid’s benchmark IBEX 35 leapt 1.11 per cent to 8.717.20. On the week, London’s FTSE 100 added 0.28 per cent, French CAC 40 rocketed 2.66 per cent and Frankfurt’s DAX gained 1.62 per cent, while Italy’s FTSE MIB torrented 3.25 per cent and Madrid’s IBEX 35 soared 3.10.

Meanwhile, referring to a dovish ECB policy for a longer duration, a chief market analyst at Online trader IG, Chris Beauchamp said, “The Monday selloff seems like a moment of brief panic, and ... was enough, it appears, to reset sentiment and activity and prompt a resurgence of bullish momentum. Central bank(s) have done their bit to allay fears, most notably the ECB this week.