Euro­pean shares close week at one-month high

Malta Independent - - BUSINESS & FINANCE -

Euro­pean shares closed at a one-month high, cap­ping their long­est streak of weekly gains since July. The Stoxx Europe 600 In­dex rose 0.2 per­cent at the close of trad­ing on Fri­day, tak­ing its ad­vance for the week to 0.9 per­cent.

The re­gion’s shares have re­bounded 4 per­cent from a low on the 4th Novem­ber on bets that Don­ald Trump’s ad­min­is­tra­tion will lead to in­creased in­fra­struc­ture spend­ing. That spurred a jump in cop­per, which helped send com­modi­ties to their big­gest weekly gains in al­most five months, push­ing Euro­pean min­ers to their high­est prices since June 2015 on Thurs­day.

While U.S. equities reached a record high this week, the Stoxx 600 is still down 6.4 per­cent for the year.

Euro-area eco­nomic growth ac­cel­er­ated to its fastest pace this year as grow­ing or­der books prompted com­pa­nies to add more work­ers and raise prices.

A Pur­chas­ing Man­agers’ In­dex for man­u­fac­tur­ing and ser­vices rose to 54.1 in Novem­ber from 53.3 a month ear­lier, IHS Markit said on Wed­nes­day. That’s the strong­est level in 11 months and above the 50 mark that di­vides ex­pan­sion from con­trac­tion.

The signs that re­cov­ery is gath­er­ing mo­men­tum should give some re­lief to the Euro­pean Cen­tral Bank as it faces a com­plex de­ci­sion on the 8 De­cem­ber whether to ex­tend its 1.7 tril­lion-euro quan­ti­ta­tive-eas­ing pro­gram. Pres­i­dent Mario Draghi said this week that the re­cov­ery re­mains re­liant on con­tin­ued mone­tary sup­port.

Asian stocks headed for the first weekly ad­vance this month as a weaker yen spurred gains in Ja­panese shares and op­ti­mism grew that the U.S. econ­omy will be able to cope with higher bor­row­ing costs. Don­ald Trump’s pres­i­den­tial win has fu­eled op­ti­mism that his pledge to cut taxes and in­crease fis­cal spend­ing will boost prof­its in the world’s largest econ­omy and lead global growth. Still, Asian stocks are down so far this month as ex­pec­ta­tions of an im­mi­nent U.S. in­ter­est rate in­crease next month prompted in­vestors to aban­don emerg­ing-mar­ket as­sets.

Newspapers in English

Newspapers from Malta

© PressReader. All rights reserved.