European shares continue to rise on speedy economic recovery

On Tuesday European shares rose for an eighth straight session as optimism around a rapid economic recovery across the region lifted industrial stocks, while technology shares followed an overnight jump in their U.S. peers.

The pan-European STOXX 600 gained 0.4% in its longest winning streak in more than two years as investors also wagered on global central banks keeping the stimulus ongoing.

Focus this week will be on the U.S. Federal Reserve’s two-day policy meeting commencing on Tuesday, where investors will be looking for a vision on whether the central bank has begun discussing reducing bond purchases and if policymakers are worried about the increasing inflation.

The benchmark STOXX 600 has reached record highs in recent weeks, following dovish signs from the European Central Bank in relation to its position on rising inflation. Germany’s DAX remained near all-time highs as data showed consumer prices rose 0.5% month-on-month in May, in line with economists’ anticipations.

Investors will also be looking for inflation data from across the euro zone later on this week. On Tuesday, government bond yields in the bloc traded in narrow ranges, with investors awaiting the first bond issuance backing the EU recovery fund.

European industrial stocks, which are in position to gain from an economic recovery, were up 0.9%, while technology shares gained about 1% after the tech-heavy Nasdaq closed Monday at a record high.

London’s FTSE 100 rose by 0.4% as the UK posted a record increase in the number of employees on company payrolls in May as COVID-19 restrictions were reduced.

In company news, Sweden’s H&M, the world’s secondbiggest fashion retailer, recorded a rise in sales in the three months through May, while British housebuilder Bellway said it expected demand for new homes to remain strong. Shares of both companies, however, fell 0.8% and 0.4%, respectively. Non-Standard Finance dropped by 9.5% as the British subprime lender said it was seeking to raise around 80 million pounds potentially through a share sale.