European equities close higher on continued optimism about economic recovery

(RTTNews) – European stocks closed higher on Friday amid growing optimism about the global economic recovery on optimistic economic data from the United States

The easing of restrictions on coronaviruses in several locations in the United States and Europe following an acceleration of the vaccination campaign have also contributed to the positive mood in the markets.

Markets have also reacted positively to reports that US President Joe Biden is seeking $ 6 trillion in federal spending plans for 2022.

The pan-European Stoxx 600 climbed 0.57%. The German DAX rose 0.74%, France’s CAC 40 gained 0.75%, while the UK’s FTSE 100 rose 0.04%. The Swiss SMI ended up 0.76%.

Among other markets in Europe, Austria, Belgium, Denmark, Finland, Greece, the Netherlands, Norway, Poland, Spain, Sweden and Turkey closed higher.

The Czech Republic, Iceland, Ireland, Portugal and Russia fell.

In the UK market, Taylor Wimpey, Croda International, Persimmon, Barratt Developments and Scottish Mortgage rose 2.3% to 2.6%. Berkeley Group Holdings, Burberry Group, Melrose Industries, HSBC Holdings, Standard Chartered, ICP and Bunzl also rose strongly.

In contrast, Antofagasta, Evraz, Ashtead Group, Ocado Group, Polymetal International, Fresnillo and British American Tobacco lost 1.7-2.2%.

On the French market, Air France-KLM grew by more than 2.5%. Kering, AXA, LOreal, Crédit Agricole, WorldLine, STMicroElectronics, Safran, Sanofi and Airbus grew by 1 to 2%.

In Germany, Siemens jumped more than 3.5%. Lufthansa, Infineon Technologies, Merck, MTU Aero Engines, Munich RE, BASF, Allianz, SAP and Deutsche Bank closed with net to moderate gains.

Daimler, BMW, Deutsche Post, Fresenius Medical Care and Thyseenkrupp have closed their doors.

In the economic publications, the index of economic sentiment of the European Commission is strongly at 114.5 in May, against 110.5 in April, and above expectations for a score of 112.1.

The rise in consumer prices in France accelerated to 1.4% in May from 1.2% in April, flash data from the Insee statistical office revealed.

The rate was in line with economists’ expectations and a similar higher rate was last reported in February 2020.

The French economy contracted 0.1% in the first quarter of 2021, revised official data showed, signaling a slide into recession as construction suffered worse than previously estimated.

German import prices rose at the fastest pace in more than a decade in April, rising 10.3% year-on-year, after rising 6.9% in March, data shows published Friday by Destatis.

On a monthly basis, import price inflation slowed to 1.4%, from 1.8% the previous month. The rate is expected to slow to 1.1%.

Switzerland’s economic outlook remained very positive in May, driven by manufacturing and exports, survey data from the KOF Economic Institute showed on Friday.

The KOF Economic Barometer climbed to a new high of 143.2 points from 136.4 in April, which was revised from 134.0. Economists had forecast a score of 136. The reading is well above its long-term average.

In the US news, a Federal Reserve-preferred inflation reading showed price growth accelerating, but not as much as traders had feared.

The reading on consumer staples showed that the pace of price growth accelerated to 3.1% in April from 1.9% in March.

The Fed has attributed the recent price hike to “transitory factors” and has repeatedly hinted that it will not consider tightening until prices rise above 2% for “some time.”

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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