European stocks hit the longest record high since 1990

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Stock update

Driven by the heavy earnings season and the strong recovery from the pandemic, European stock markets rose slightly, setting their longest record high in at least three decades.

The regional Stoxx 600 index edged up by 0.2% to a new high-a record high for the 10th consecutive trading day. The index will set a record of winning streaks for the longest trading day in history since at least 1990.

To date, strong earnings reported on both sides of the Atlantic have boosted stock prices. According to Goldman Sachs, in Europe, they have exceeded expectations by 11% so far this quarter, with more than half of companies reporting that their performance has exceeded analyst expectations by at least 5%.

“The performance of European stock markets this year is as good as that of the United States. [which is] It’s something to be proud of,” said Sharon Bell, the bank’s European strategist, noting that after the 2008 financial crisis, it will take 11 years for earnings per share to recover. Peak before the epidemic”.

“During this pandemic, the dog did not bark: Europe has no banking crisis, no sovereign crisis, no debt crisis. Many things that Europe implemented for 2008 have now achieved results,” she added.

According to futures following the S&P 500 Index and the Nasdaq Composite Index, the US market is expected to open in New York.

Financial and consumer stocks led the gains, with food equipment company GEA Group and financial software provider SimCorp leading the gains after reporting strong second-quarter results on Friday. After the strong growth data for the second quarter released on Thursday, the UK’s FTSE 100 index rose 0.4% due to gains from miners and retailers.

The Asian market is weak, affected by the spread of the Covid-19 Delta variant, and Beijing’s efforts Control key sectors of the economy, including its powerful technology companies. Hong Kong’s Hang Seng Index fell 0.5%, Chinese technology conglomerates Tencent and Alibaba fell behind, and the Shanghai and Shenzhen 300 Index also fell.

China has adopted a “zero tolerance” attitude towards the spread of the Delta variant nationwide, prompting the authorities to partially close the world’s third-largest port on Thursday after detecting a case. After the blockade restrictions were lifted in many parts of the world, the supply chain was unable to cope with the shock of demand, and global transportation costs have reached record levels.

Ernan Cui, China analyst at Gavekal Research, said: “The leadership believes that the economic costs of a zero-tolerance policy are manageable and much better than the uncontrolled spread of Covid-19.”

“This means that for at least the rest of 2021, domestic travel and consumer services will continue to be restrained by restrictions, and the prospect of reopening international travel is slim at best.”

Government bonds rose slightly, and the U.S. 10-year Treasury bond yield fell 0.03 percentage points to 1.33%. As prices fall, yields rise. Oil prices fell, and Brent crude oil fell 0.2% to US$71.19.

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