European stock indices score best week in two months

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European stock indices score best week in two months

In a volatile trading session on Friday, a basket of major European stock indices had wrapped up the session slightly lower as investors’ optimism appeared to have hit a stumbling block after US September nonfarm payrolls data had fallen to a nearly nine-month low, however, major European bourses still logged their best weekly percentage gains in more than two months as a soaring commodity prices alongside a US Senate accord to raise the US Treasury Department’s borrowing capacity had kept a lid on the losses.

In point of fact, in the day’s marginal losses in major European indices, were almost entirely catalysed by a huge miss in US nonfarm payrolls data that had unmasked the US economy had created 194,000 jobs last month compared to an analysts’ estimate of 500,000 positions, however, several analysts were quoted saying followed by the data that the headline numbers might be disappointing, but an utterly resilient growth momentum in US labour remained intact with layoffs falling sharply, unemployment rate dipping to 4.8 per cent from 5.2 per cent and hourly wages rising 0.6 per cent from a 0.4 per cent registered a month earlier, which eventually pared some of the losses.

Besides, a sky-high commodity prices had soared stocks exposed to commodities with oil and auto leading gains across Europe, however, a steep tottering in so-called growth stocks with tech shares taking a header of 1.6 per cent, had led to a decline of 0.5 per cent in regional pan-European STOXX 600.

Nonetheless, STOXX 600 rose over 1.0 per cent on the week.

European stocks post lofty gains on the week

Citing statistics, in the day’s European market wind-down, London’s blue-chip FTSE 100 gained 0.25 per cent to 7.095 and French CAC 40 shed 0.61 per cent to 6,559.99, while Frankfurt’s DAX dwindled 0.29 per cent to 15,206.13.

Elsewhere in the Europe, Italy’s FTSE MIB rose 0.23 per cent to 26,051.01, while Madrid’s IBEX 35 edged 0.09 per cent lower to 8.955.00. Over the week, London’s blue-chip FTSE 100 jumped 0.97 per cent, French CAC 40 rose 0.65 per cent and Frankfurt’s DAX added 0.35 per cent, while Italy’s FTSE MIB skyrocketed 1.70 per cent and Madrid’s IBEX 35 climbed as much as 1.77 per cent.

Meanwhile, addressing to latest US nonfarm payrolls data that could yield a change of heart in US Fed policymakers over an ease of fiscal support as early as by November instead a prior projection of end-2021, a chief market analyst at, Chris Beauchamp said, “It doesn't look like today's figure comes anywhere close to the kind of scary figure that might provoke (the Fed) into swerving course at the last minute”.