European Stocks | Image:Pexels
European stock market update: European markets ended the week on a positive note, with significant gains observed across major indices. The pan-regional STOXX 600 index recorded its largest weekly increase since late January, rising for the sixth consecutive session. Meanwhile, London’s FTSE 100 achieved another record high.
Closing with a 0.8 per cent increase, the pan-European Stoxx 600 index saw notable gains led by mining stocks and utilities, which rose by 1.3 per cent and 1.5 per cent, respectively. All major European bourses reached fresh record highs, including Germany’s Dax, France’s CAC 40, and the UK’s FTSE 100.
In economic news, the UK economy showed signs of recovery as first-quarter gross domestic product (GDP) data surpassed estimates, with a 0.6 per cent growth compared to the previous three months. This positive performance follows a shallow recession experienced by the UK in the latter half of 2023.
Global markets also experienced upward momentum, with MSCI’s all-country world index nearing a record closing high following gains in Asia and strong performance in the United States. US equity markets were bolstered by corporate earnings surpassing expectations, indicating sustained growth and profit margins.
In Europe, the prospect of rate cuts contributed to driving equity markets across the eurozone, making it an attractive option for global asset allocators.
The US dollar initially declined but later turned modestly higher as investors reacted to US consumer sentiment data and statements from Federal Reserve officials. The University of Michigan’s preliminary reading of consumer sentiment for May showed a six-month low, with inflation expectations also rising.
Analysts suggest that the trend of US exceptionalism may be waning, with the dollar potentially reaching its peak and showing signs of decline. The dollar index, which measures the US currency against a basket of peers, edged up slightly, while the euro and yen weakened against the dollar. The British pound experienced a modest weekly decline following indications from the Bank of England regarding potential rate cuts and the UK economy’s exit from recession in the first quarter of the year.
(With Reuters inputs)
A major European country is constructing a massive 11-mile tunnel in a bid to end the growing congestion on its roads.The £3billion Stockholm Bypass will start
Athens' traffic woes look set to be alleviated by a new £1.26billion undergound line currently under construction.The new line is due to be completed in 2029 a
CRANS-MONTANA, SWITZERLAND - SEPTEMBER 06: Matt Wallace of England acknowledges the crowd on the 18th hole on Day Two of the Omega European Masters 2024 at Cran
England's Matt Wallace carded a brilliant 62 to open up a four-stroke lead at the halfway stage of the DP World Tour's Omega Europ