European shares post strongest monthly gains in seven months amid strong earnings

by   |  VIEW 1996

European shares post strongest monthly gains in seven months amid strong earnings

On Friday, a basket of European bourses had rounded off the session mostly flatlined, as an uptick in key financial stocks following a jump in the bond yields had overshadowed weakness in high-dividend-yielding sectors alongside commodity-exposed shares which had been lavishly languished amid a steep downhill slide in oil and metal prices, though, a majority of key European stock indices had reported the strongest monthly percentage gains in seven months.

Aside from a leap in the financial stocks, economic data released earlier in the day also had added to further optimism, as Italy and France had reported a stronger-than-anticipated third-quarter GDP (Gross Domestic Product) growth.

On top of that, the regional pan-European STOXX 600 edged 0.1 per cent higher, but had clocked a monthly percentage gain of 4.6 per cent, remarking the index’s largest monthly percentage gain in more than seven months while paring all of September losses, while insurance stocks had notched the strongest gain in the day, surging as much as 0.8 per cent.

European stock indices post best monthly gain in seven months

Citing statistics, in the day’s European market wind-down, London’s blue-chip FTSE 100 eased 0.16 per cent to 7,237.57 and French CAC 40 rose 0.38 per cent to 6,830.34, while Frankfurt’s DAX ended flatlined to 15,688.77.

Elsewhere in the Europe, Italy’s FTSE MIB winded up almost unchanged at 26,875.96, while Madrid’s benchmark IBEX 35 gained 0.35 per cent to 9,057.70.

Index On the Week On the Month
London's FTSE 100 +0.46 per cent +3.00 per cent
French CAC 40 +1.44 per cent +4.80 per cent
Frankfurt's DAX 30 +0.94per cent +3.51 per cent
Milan's FTSE MIB +1.14 per cent +4.92 per cent
Madrid's IBEX 35 +1.70 per cent +2.93 per cent
Meanwhile, projecting a side-way movement in European stock indices over coming weeks, an OANDA analyst Craig Erlam said, “We're going to keep seeing this two-way price action in the markets, driven by a clash between strong earnings and optimism over the economic outlook, contrasting with risks of higher inflation, interest rates and energy prices”.