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European stocks rise as taper bets recede

European equities on Friday remained close to record highs as bond yields fell from the US to Europe, despite signs of rising US inflation.

Investors expect the rise in price pressure to be temporary and unlikely for the Fed to withdraw financial support soon.

Investors await next week’s Federal Reserve Board of Governance monetary policy meeting Economy And policy outlook.

The Pan-European STOXX 600 rose 0.4% to a record high, rising for the sixth straight day.

Germany’s DAX rose 0.2%, France’s CAC 40 index rose 0.4%, and the UK’s FTSE 100 rose 0.6%.

Melia, the Spanish hotel chain, surged 2%. Gabriel Escarrer, CEO, said at an annual shareholders meeting on Thursday that the company expects to return to profitability in June after a 15-month deficit.

Rising metal prices boosted miners, with British-Americans, Antofagasta and Glencore rising about 2 percent.

Sanne Group’s share price surged 11.5% in London. Specialist fund managers have confirmed that they have received a fifth unsolicited, non-binding offer from Cinven regarding the possibility of a full cash offer at a price of 875p per share.

Banks fell sharply as eurozone government bond yields fell after dovish results at the ECB meeting on Thursday. Commerzbank fell 2.8%, Deutsche Bank fell 3.3% and Societe Generale gave up 1.3%.

The UK economy has grown at the fastest pace since July 2020, as government data affecting economic activity continued to be relaxed in April, according to data from the Bureau of Statistics.

Gross domestic product rose 2.3% month-on-month in April, faster than the 2.1% increase seen in March. The rate was projected to improve to 2.2 percent.

In a biannual report, the German Federal Bank predicts that the German economy will grow faster than previously estimated, with the expectation that vaccination campaigns will curb pandemics quickly and sustainably.

The central bank predicts that the largest eurozone economy will grow 3.7% in 2021, but previously it was 3%. The outlook for 2022 has been raised from 4.5% to 5.2%.

According to the Deutsche Bundesbank, real GDP growth will lose momentum in 2023, but will still grow by 1.7%.

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European stocks rise as taper bets recede

Source link European stocks rise as taper bets recede

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