EU Stocks Longest Weekly Winning Streak

EU Stocks Longest Weekly Winning Streak

European stocks were subdued on Friday’s stock market trade, but on track for their longest weekly winning streak since November 2019. Optimism on a rapid economic recovery offset doubts over the euro zone’s coronavirus vaccination programme.

The U.S. Federal Reserve’s pledge to keep its easy policy in place supported global sentiment. 

This week, London equities have outperformed in the market. The domestically focussed FTSE mid-cap index notched a record high. Britain has emerged gradually from a strict winter lockdown.

The pan-European STOXX 600 index was unchanged. It previously hit an all-time high at the open. UK’s blue-chip FTSE 100 slid 0.4% and Germany’s DAX slipped 0.2%.

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

Next week, investors will shift their focus to the U.S. earnings season. Profits at S&P 500 companies were expected to jump 25% in Q1, according to an estimate.

After the French planemaker Airbus reported slightly higher deliveries in Q1, it added 2.9%.

Holiday company TUI has previously given a statement that  it was raising 350 million euros ($416.33 million) through an issuance of convertible bonds to bolster its finances and repay debt. Following this, the company declined 7.3%.

 Among the biggest drags on STOXX 600, British American Tobacco dropped 2.2%. This came after J.P. Morgan downgraded the stock to “neutral”.

World Stocks Soar, Powered by Wall Street

On Friday, global stocks hit record highs, as  U.S. inflation fears receded. Tech shares on Wall Street were up since the lack of inflation pressure kept bond yields near two-week lows.

Late on Thursday, Federal Reserve Chair Jerome Powell reiterated that inflation was not a worry. Before this was an unexpected rise in the number of Americans filing new claims for unemployment benefits.

 In Asian trading, MSCI’s broadest gauge of world stocks set a record high, though it lost 0.1% at 0755 GMT. MSCI has climbed more than 1.5% this week.

Emini futures were unchanged after the S&P 500 rose 0.42% to a record high. The Nasdaq Composite gained 1.03%.

Britain’s FTSE 100 brought gains for the week to nearly 3%. It has touched its highest in more than a year, thanks to the country’s speedy vaccine rollout. Meanwhile, German stocks slid 0.22%.