AIRLINK 74.00 Decreased By ▼ -0.25 (-0.34%)
BOP 5.14 Increased By ▲ 0.09 (1.78%)
CNERGY 4.55 Increased By ▲ 0.13 (2.94%)
DFML 37.15 Increased By ▲ 1.31 (3.66%)
DGKC 89.90 Increased By ▲ 1.90 (2.16%)
FCCL 22.40 Increased By ▲ 0.20 (0.9%)
FFBL 33.03 Increased By ▲ 0.31 (0.95%)
FFL 9.75 Decreased By ▼ -0.04 (-0.41%)
GGL 10.75 Decreased By ▼ -0.05 (-0.46%)
HBL 115.50 Decreased By ▼ -0.40 (-0.35%)
HUBC 137.10 Increased By ▲ 1.26 (0.93%)
HUMNL 9.95 Increased By ▲ 0.11 (1.12%)
KEL 4.60 Decreased By ▼ -0.01 (-0.22%)
KOSM 4.83 Increased By ▲ 0.17 (3.65%)
MLCF 39.75 Decreased By ▼ -0.13 (-0.33%)
OGDC 138.20 Increased By ▲ 0.30 (0.22%)
PAEL 27.00 Increased By ▲ 0.57 (2.16%)
PIAA 24.24 Decreased By ▼ -2.04 (-7.76%)
PIBTL 6.74 Decreased By ▼ -0.02 (-0.3%)
PPL 123.62 Increased By ▲ 0.72 (0.59%)
PRL 27.40 Increased By ▲ 0.71 (2.66%)
PTC 13.90 Decreased By ▼ -0.10 (-0.71%)
SEARL 61.75 Increased By ▲ 3.05 (5.2%)
SNGP 70.15 Decreased By ▼ -0.25 (-0.36%)
SSGC 10.52 Increased By ▲ 0.16 (1.54%)
TELE 8.57 Increased By ▲ 0.01 (0.12%)
TPLP 11.10 Decreased By ▼ -0.28 (-2.46%)
TRG 64.02 Decreased By ▼ -0.21 (-0.33%)
UNITY 26.76 Increased By ▲ 0.71 (2.73%)
WTL 1.38 No Change ▼ 0.00 (0%)
BR100 7,874 Increased By 36.2 (0.46%)
BR30 25,596 Increased By 136 (0.53%)
KSE100 75,342 Increased By 411.7 (0.55%)
KSE30 24,214 Increased By 68.6 (0.28%)
Markets

European stocks at record highs, weak U.S. payrolls hit tapering bets

  • The pan-European STOXX 600 index rose 0.4pc to a new closing high of 452.57, having earlier hit an all-time high of 452.71. It added 0.8pc for the week.
Published June 4, 2021

European stocks ended at a record high on Friday as weak U.S. payrolls data pointed to lower chances of early policy tightening, while optimism over a euro zone economic recovery buoyed most sectors.

The pan-European STOXX 600 index rose 0.4pc to a new closing high of 452.57, having earlier hit an all-time high of 452.71. It added 0.8pc for the week.

Technology stocks rose 1.2pc and were the best performers for the day, led by Austrian chipmaker AMS.

Shares of the firm rose 4.4pc after it announced the sale of its North American digital systems business to U.S.-based Acquity Brands.

Global stocks rose after data showed U.S. non-farm payrolls rose less than expected in May, leading many to tone down expectations for hawkish signals from the Federal Reserve.

The Fed has cited inflation and labour market health as two key factors necessary for it to tighten policy.

The data comes ahead of Fed and European Central Bank policy meetings next week, where investors will watch for hints on tapering their large bond purchase programmes.

Both banks are widely expected to leave policy unchanged.

"It is too soon for the ECB to begin even hinting at any form of monetary tightening, even with economic growth improving," BCA Research analysts wrote in a note. "While headline inflation pushed above the central bank's 2pc target in May, core inflation only rose to 0.9pc."

Still, recent European data has shown the economy heating up rapidly after last year's COVID-induced lull.

The dovish outlook on lending rates weighed on government bond yields, which in turn saw European bank stocks fall 0.9pc.

The banking-heavy Spanish benchmark index also fell 0.6pc.

European automobile stocks were the best performers this week, adding more than 5pc as positive sales and production data from major American car makers Ford and General Motors boosted the sector.

Shares in British Airways-owner IAG, Wizz Air and easyJet slipped between 0.9pc and 3.3pc after Britain removed Portugal from its green list of quarantine-free travel destinations and added seven countries, including Egypt and Sri Lanka, to its "red list" which requires hotel quarantine on return to England.

Ryanair slipped 0.8pc even as its chief executive officer forecast unrestricted movement between Europe and Britain from July onwards.

French media giant Vivendi, which owns Universal Music Group, slipped 0.3pc after early gains on news billionaire William Ackman's Pershing Square Tontine was in talks to buy 10pc of the music label for around $4 billion.

Comments

Comments are closed.