European Stocks on a Winning Streak
European stocks have been on a winning streak, with the Stoxx Europe 600 Index closing higher for the sixth consecutive week. This marks the longest weekly winning streak since April of this year.
Gains Across Sectors
The Stoxx Europe 600 Index rose 0.3% on Friday, closing at 431.45. This marks the sixth consecutive week of gains, with the index rising 4.2% since the start of the streak.
Gains were seen across sectors, with the technology sector leading the way. The technology sector rose 1.2%, with the consumer discretionary sector rising 0.9%. The financials sector also rose 0.7%.
European Markets Outperforming U.S. Markets
European markets have been outperforming U.S. markets in recent weeks. The S&P 500 Index has risen 2.3% since the start of the streak, while the Nasdaq Composite Index has risen 3.2%.
The outperformance of European markets is due in part to the strong performance of the technology sector. The technology sector has been the best performing sector in Europe, with the Stoxx Europe 600 Technology Index rising 6.2% since the start of the streak.
European Markets Reacting to Vaccine News
European markets have been reacting positively to news of a potential coronavirus vaccine. On Thursday, the European Union approved the use of the Pfizer-BioNTech vaccine, which is expected to be available in the EU by the end of the year.
The news of the vaccine has boosted investor sentiment, with the Stoxx Europe 600 Index rising 1.2% on Thursday. The index has now risen 8.3% since the start of the streak.
European Markets Reacting to Economic Data
European markets have also been reacting positively to economic data. On Thursday, the European Central Bank released its latest economic projections, which showed that the eurozone economy is expected to grow by 4.2% in 2021.
The news of the economic recovery has boosted investor sentiment, with the Stoxx Europe 600 Index rising 1.2% on Thursday. The index has now risen 8.3% since the start of the streak.
European Markets Reacting to Central Bank Policy
European markets have also been reacting positively to central bank policy. On Thursday, the European Central Bank announced that it would keep interest rates at their current level until at least the end of 2023.
The news of the central bank’s policy has boosted investor sentiment, with the Stoxx Europe 600 Index rising 1.2% on Thursday. The index has now risen 8.3% since the start of the streak.
Outlook for European Markets
The outlook for European markets remains positive, with the Stoxx Europe 600 Index on track to close higher for the seventh consecutive week. The index is now up 8.3% since the start of the streak.
The positive sentiment is likely to continue in the coming weeks, as investors remain optimistic about the potential for a coronavirus vaccine and the economic recovery. The European Central Bank’s decision to keep interest rates at their current level until at least the end of 2023 is also likely to support investor sentiment.