European Stocks Eye Longest Weekly Winning Streak Since December
European stocks are on track for their longest weekly winning streak since December, as investors remain optimistic about the economic recovery from the coronavirus pandemic.
Positive Economic Outlook
The Stoxx Europe 600 Index rose 0.3% on Friday, extending its weekly gain to 4.3%. The benchmark has now risen for seven consecutive weeks, its longest winning streak since December.
The positive sentiment was driven by a string of better-than-expected economic data from the region. The European Commission’s economic sentiment indicator rose to its highest level since February 2020, while the euro area’s manufacturing PMI rose to its highest level since April 2018.
Gains Across Sectors
Gains were seen across sectors, with technology stocks leading the way. The Stoxx Europe 600 Technology Index rose 1.2%, while the Stoxx Europe 600 Automobiles & Parts Index rose 0.9%.
The euro area’s banking sector also rose, with the Stoxx Europe 600 Banks Index up 0.7%. The sector has been buoyed by the European Central Bank’s decision to keep interest rates at record lows.
European Central Bank Stimulus
The European Central Bank has been providing stimulus to the region’s economy since the start of the pandemic. The bank has cut interest rates to record lows and launched a €1.85 trillion bond-buying program.
The ECB has also launched a new €750 billion pandemic emergency purchase program, which is aimed at providing additional support to the region’s economy.
Rising Vaccination Rates
The European Union has also been ramping up its vaccination efforts, with more than half of the population now having received at least one dose of a vaccine. This has helped to boost investor confidence in the region’s economic recovery.
Stronger Euro
The euro has also been strengthening against the U.S. dollar, which has helped to boost European stocks. The euro has risen more than 4% against the dollar since the start of the year.
Outlook
The outlook for European stocks remains positive, as investors remain optimistic about the region’s economic recovery. The European Central Bank’s stimulus measures and the rising vaccination rates have helped to boost investor confidence.
The euro’s strength against the U.S. dollar has also been a tailwind for European stocks. The euro’s strength is likely to continue, as the European Union’s economy continues to recover from the pandemic.
Overall, European stocks are on track for their longest weekly winning streak since December, as investors remain optimistic about the region’s economic recovery. The European Central Bank’s stimulus measures and the rising vaccination rates have helped to boost investor confidence, while the euro’s strength against the U.S. dollar has also been a tailwind for European stocks.