AGL 5.78 Increased By ▲ 0.03 (0.52%)
ANL 8.88 Increased By ▲ 0.03 (0.34%)
AVN 78.93 Decreased By ▼ -0.57 (-0.72%)
BOP 5.29 Increased By ▲ 0.12 (2.32%)
CNERGY 4.70 Increased By ▲ 0.01 (0.21%)
EFERT 81.57 Increased By ▲ 0.47 (0.58%)
EPCL 50.96 Decreased By ▼ -0.03 (-0.06%)
FCCL 13.35 Decreased By ▼ -0.14 (-1.04%)
FFL 5.74 Decreased By ▼ -0.07 (-1.2%)
FLYNG 7.15 Decreased By ▼ -0.06 (-0.83%)
FNEL 4.82 Increased By ▲ 0.02 (0.42%)
GGGL 8.87 Increased By ▲ 0.17 (1.95%)
GGL 15.90 Increased By ▲ 0.15 (0.95%)
HUMNL 5.79 Decreased By ▼ -0.06 (-1.03%)
KEL 2.68 Increased By ▲ 0.10 (3.88%)
LOTCHEM 29.06 Decreased By ▼ -0.44 (-1.49%)
MLCF 24.99 Decreased By ▼ -0.31 (-1.23%)
OGDC 72.46 Increased By ▲ 0.01 (0.01%)
PAEL 15.35 Decreased By ▼ -0.05 (-0.32%)
PIBTL 5.06 Decreased By ▼ -0.09 (-1.75%)
PRL 16.31 Increased By ▲ 0.06 (0.37%)
SILK 1.08 Increased By ▲ 0.01 (0.93%)
TELE 9.39 Increased By ▲ 0.09 (0.97%)
TPL 7.34 Decreased By ▼ -0.01 (-0.14%)
TPLP 18.90 Decreased By ▼ -0.26 (-1.36%)
TREET 21.95 Increased By ▲ 0.10 (0.46%)
TRG 140.87 Decreased By ▼ -1.93 (-1.35%)
UNITY 17.01 Decreased By ▼ -0.19 (-1.1%)
WAVES 9.90 Decreased By ▼ -0.13 (-1.3%)
WTL 1.41 Increased By ▲ 0.03 (2.17%)
BR100 4,255 Increased By 7.1 (0.17%)
BR30 15,733 Decreased By -28.8 (-0.18%)
KSE100 42,394 Increased By 44.9 (0.11%)
KSE30 15,664 Increased By 31.9 (0.2%)
Markets

Auto rally, corporate earnings push European shares to record highs

  • The pan-European STOXX 600 index rallied 1.1pc to hit a record high of 461.75, and marked a 1.5pc weekly rise - its biggest weekly gain since early May.
Published July 23, 2021
Follow us

European stocks closed at all-time highs on Friday as optimism about the earnings season and the European Central Bank's pledge of continued monetary support outweighed risks of a resurgence in COVID-19 cases.

The pan-European STOXX 600 index rallied 1.1pc to hit a record high of 461.75, and marked a 1.5pc weekly rise - its biggest weekly gain since early May.

Automakers were the top gainers, up 2.5pc.

Mercedes-Benz maker Daimler gained 5.5pc after Kepler Cheuvreux upgraded its stock to "buy", saying its growth is not properly reflected in the share price.

European stocks steady after Delta fuels global rout

French car parts maker Valeo jumped 6pc after it posted higher first-half sales and profit, and said it expected the shortage of key technology chips to ease.

Peers Faurecia and Continental AG rose more than 3pc each.

A bout of selling hit financial markets on Monday as investors grew nervous about the fast-spreading Delta variant of COVID-19 hampering a global economic recovery.

However, strong earnings reports and the ECB's commitment keep interest rates at record lows for even longer pushed the benchmark STOXX 600 higher every day since then.

"The Monday selloff seems like a moment of brief panic, and ... was enough, it appears, to reset sentiment and activity and prompt a resurgence of bullish momentum. Central bank(s) have done their bit to allay fears, most notably the ECB this week," said Chris Beauchamp, chief market analyst at online trader IG.

The focus next week will be on the U.S. Federal Reserve's two-day meeting. Chair Jerome Powell's dovish stance so far has helped markets stay on an upward trajectory.

Rafale jets maker Dassault Aviation climbed 4.5pc on reporting higher sales and profits in the first half, while UK's Vodafone rose 2.4pc after a service revenue beat.

Chip equipment maker ASML hit a fresh record high as strong earnings forecast earlier this week prompted brokerages to hike their price target.

Virus worries hammer European shares to their worst day this year

"We believe that European markets will benefit from the growth recovery in the second half of the year," said Esty Dwek, head of global market strategy at Natixis Investment Managers.

Euro zone business activity expanded at its fastest monthly pace in over two decades in July, IHS Markit's flash survey showed, but fears of another wave of infections hit business confidence.

German Purchasing Managers' Index (PMI) hit its highest level in nearly a quarter of a century, creating inflationary bottlenecks.

Danske Bank slid 4.3pc on dismal return on equity declined in the first quarter, while Norwegian solar energy company Scatec slumped 16.2pc after a core profit miss.

Comments

Comments are closed.

Auto rally, corporate earnings push European shares to record highs

Pakistan's CPI-based inflation in November clocks in at 23.8%

Rupee registers gains, settles at 223.69 against US dollar

Rise in TTP attacks in Pakistan should be concern for Afghan Taliban as well: Rana Sanaullah

SBP-held foreign exchange reserves fall $327mn, stand at $7.5bn

Fawad says PTI to dissolve Punjab, KP assemblies next week

PM Shehbaz calls for ‘practical implementation’ of loss & damage fund to cope with climate challenge

EU tentatively agrees $60 a barrel price cap on Russian seaborne oil

No restrictions placed on LCs for import of oil, other petroleum products: SBP

Record-breaking England put Pakistan to the sword in first Test

Google app payments: IT ministry says issue resolved