European stocks scale new record highs, log best winning streak since 2006

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European stocks scale new record highs, log best winning streak since 2006

On Friday, a basket of European stock indices had closed out the session in record closing highs while clocking their fourth successive weekly percentage gains, the largest winning streak since 2006, as growing optimisms over a strong earnings’ season alongside a solid economic recovery from last year’s pandemic-led fiscal pandemonium appeared to have offset worries of a rapidly surging delta variant.

Nevertheless, European investors seemed less cautious about the latest upsurge in delta cases as a mass-scale vaccination push earlier in the year had reportedly declined the rate of hospitalization by a substantial scale.

In point of fact, major stock indices in Europe and the US had spiked to record closing highs this week, mostly boosted up by optimisms over a strong earnings’ season as beforementioned, while latest whispers about a further ease of ECB monetary policy had spurred up investors’ optimism, however, Asian equities had wrapped up the week in an ambivalent tenure amid worries of a fast-spreading delta variant.

European stocks scale record closing high

Citing statistics, on Friday’s European market closure, the regional pan-European STOXX 600 edged 0.2 per cent higher to a record closing high of 476.16, extending a blistering record-setting rally for the tenth straight session in a row and remarking the best winning streak since December 2006.

Besides, Germany’s DAX had hit the 16,000 level for the first time on record, while French CAC 40 had spiked to its highest level in roughly 21 years. In tandem, London’s FTSE 100 gained 0.35 per cent to 7,218.71, French CAC 40 added 0.20 per cent to 6,896.04 and Frankfurt’s DAX rose 0.25 per cent to 15,977.44 after hitting a 16,000-mark for the first time on record earlier in the day.

Elsewhere in the Europe, Italy’s FTSE MIB gained 0.36 per cent to 26,652.56, while Madrid’s IBEX 35 added 0.29 per cent to 8,999.80. On the week, London’s FTSE 100 gained 1.34 per cent, French CAC 40 jumped 1.14 per cent and Frankfurt’s DAX gained 1.29 per cent, while Italy’s FTSE MIB climbed as much as 2.08 per cent and Madrid’s IBEX 35 soared 1.43 per cent.

Meanwhile, undermining the fiscal impacts of a delta variant in context of an acceleration in vaccination drive that appeared to have decreased hospitalizations by a significant margin, a chief market analyst at CMC Markets UK, Michael Hewson said, “If investors are concerned about rising Delta variant cases globally there’s little evidence that it is prompting any undue worry, although markets in Asia have been a little more cautious”.