EconomyMarkets

European stocks on longest weekly winning streak since November 2019 By Reuters

© Reuters. The German share price index DAX graph is pictured at the stock exchange in Frankfurt

By Sruthi Shankar

(Reuters) -European stocks were subdued on Friday, but on course for their longest weekly winning streak since November 2019 as hopes of a rapid recovery in economic growth offset doubts over the euro zone’s COVID-19 vaccination programme.

The pan-European index was flat after hitting an all-time high at the open, while UK’s blue-chip and slipped 0.4% and 0.2%, respectively.

Global sentiment was underpinned by the U.S. Federal Reserve’s pledge to keep its super-easy policy in place even as data showed the world’s largest economy kicking into higher gear.

London equities have outperformed this week, with the domestically focussed FTSE mid-cap index notching a record high as Britain gradually emerges from a strict winter lockdown.

“While the UK and US have done relatively well on the vaccination roll-out, continental Europe has lagged,” said Dhaval Joshi, chief strategist at BCA Research.

“But they will sort it out later this year. You’ll see an early rebound in UK and US economies from Q2 onwards. In continental Europe, it will be later this year rather than Q2.”

European stocks hit a series of all-time highs this week, despite setbacks on the vaccination front after European regulators found a potential link between AstraZeneca (NASDAQ:)’s COVID-19 vaccine and reports of rare brain blood clots.

Investors will shift their focus to the U.S. earnings season next week, with profits at companies expected to jump 25% in the first quarter, according to Refinitiv IBES estimate.

Airbus rose 2.9% after the French planemaker reported slightly higher deliveries in the first quarter.

Holiday company TUI fell 7.3% after it said it was raising 350 million euros ($416.33 million) through an issuance of convertible bonds to bolster its finances and repay debt.

British American Tobacco (NYSE:) dropped 2.2%, among the biggest drags on STOXX 600, after J.P. Morgan downgraded the stock to “neutral”.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.


Source link

Show More

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button