The Malta Independent on Sunday
European markets end short week at record highs
European stocks wrapped up a holidaythinned week at record highs on Friday as growing hopes that a Sino-U.S. trade deal would be inked soon, as well as the latest dose of upbeat China data supported prospects of an improving global growth.
The pan-European STOXX 600 index gained about 0.2% as investors returned from Christmas and Boxing day holiday to comments from Beijing that it was in close contact with Washington about their initial agreement, shortly after U.S. President Donald Trump talked up a formal signing ceremony.
The benchmark index, up more than 24% so far in 2019, is on course for its best year since the global financial crisis as firming indications of a Phase 1 trade deal and hopes of a smoother Brexit in the final month of the year.
Adding to the upbeat mood was economic data on Friday which showed profits at industrial firms in China rose at the fastest pace in eight months in November.
Among European sectors, financial services index, industrial goods & services, chemicals and health care index notched intraday record highs. Trade-sensitive European miners gained 0.7% on Friday.
The export-heavy German stock index climbed 0.3% while UK's blue-chip notched its eleventh straight session of gains. Even with the recent UK general election smoothing the path for Britain’s exit from the European Union, the country’s ability to strike a new trading deal with the EU in a relatively short span of time remains a concern for some investors. With no major updates expected this year either on the trade front or on future Brexit negotiations, volumes are expected to remain light until the first full week of January.
Investors will also look to fourth-quarter corporate financial results due next month for clues on companies’ outlook on growth next year.