European shares jump on improving global economic data, insurers’ rally

by   |  VIEW 480

European shares jump on improving global economic data, insurers’ rally

On Wednesday, a raft of European stock indices had winded down the day broadly higher, mostly buoyed up by an improvement in investors’ sentiment followed by the release of a waft of upbeat economic data that brushed away the market participants’ concern over a widening rift between Washington and Beijing over Hong Kong issue, while insurers’ stocks also added to optimism after French insurer AXA had been quoted saying that it would pay off a dividend.

Aside from that, since hopes of a monstrous stimulus package has been spurring up investors’ optimism over the recent past, which had added to further bullish wing on Wednesday followed by the release of a number of fairly upbeat economic data, suggesting an earlier-than-anticipated recovery from the pandemic-driven downturn, the regional pan-European STOXX 600 gained as much as 2.5 per cent to wrap up the day at its highest level since March 6, while Frankfurt’s DAX had outperformed the rest of Europe with a 3.9 per cent climb.

If truth is to be told, the European stock exchanges had been performing muscling up over the recent past, as several countries of the bloc had eased lockdown measures, while prospects of a potential pandemic vaccine alongside remarks from an Italian physician that the pandemic pathogen had been losing its potency, had assisted the STOXX 600 to pare more than 37 per cent of its losses witnessed during the pandemic-led rout in March.

Strong data, recovery hopes bolster European stock indices

Apart from an en-masse stimulus package from the European Central Bank, the coalition Government of Germany had also approved a €130 billion relief funds in order to heave the economy up from a pandemic-driven retreat on Wednesday, eventually spurring up the investors’ sentiment, while an improvement in China’s services sector had added to further hopes.

Citing statistics, on the day’s European market closure, almost all of the key indices of the bloc had rounded off with a broad-based rally as beforementioned, while London’s FTSE 100 surged 2.61 per cent to 6,382.41, French CAC 40 jumped 3.36 per cent to 5,022.38 and leading the charges on the day’s European market, Frankfurt’s DAX had curtained off the day 3.88 per cent higher to 12,487.36.

Elsewhere in the Europe, Madrid’s IBEX 35 rocketed 2.95 per cent to 7,626.40, while Italy’s benchmark FTSE MIB feathered as much as 3.54 per cent to wind up the day at 19,641.81. Meanwhile, voicing an upbeat note over a quicker economic recovery in the eurozone, an associate portfolio manager at M&G Investments, Randeep Somel said on the day’s European market wind down, “When (the slump) happened, there was not a fundamental issue in the economy.

It was all down to a single event and there’s no reason why we can’t come back very strongly.