The Malta Independent on Sunday
European stocks with their first weekly loss in eight
European stocks marked their first weekly loss in eight on Friday as a surge in global coronavirus cases offset optimism about a strong earnings season, while Madrid-based Allfunds jumped on its Amsterdam market debut.
Defensive plays such as the healthcare sector and consumer stocks were among the biggest decliners, while surging commodity prices lifted miners.
Sentiment was hit following reports on Thursday that U.S. President Joe Biden planned to raise income taxes on the wealthy, a proposal some said would be hard to pass in Congress.
Meanwhile, India reported the world’s highest daily tally of coronavirus cases for a second day and Japan was set to declare “short and powerful” states of emergency for Tokyo, Osaka and two other prefectures as the country struggles to contain a resurgent pandemic.
Meanwhile, Spanish fund distribution firm Allfunds jumped more than 20.4% on its first day of trading, boosting an IPO market dented by last month’s underwhelming Deliveroo listing.
About 10% of STOXX 600 companies have reported so far, and 67% of them have topped profit expectations, according to Refinitiv data.
Major regional indexes barely moved after a survey showed the euro zone’s recovery from the pandemic-led economic downturn was much stronger than expected in April.
Stocks rallied on Wall Street, with the S&P 500 hitting an intraday record high, a day after reports of a Biden administration push to raise taxes on capital gains shoved indexes lower. The proposed increases had been public since the presidential campaign.
The strong economic data also lifted equities. MSCI’s gauge of stocks across the globe gained 0.77% to end the week down just 0.17%. The pan-European STOXX 600 index lost 0.13%. Emerging market stocks rose 0.86%. MSCI’s broadest index of Asia-Pacific shares outside Japan closed 0.82% higher. Japan’s Nikkei futures rose 1.00%.
Oil prices edged up with support from the economic data, but concerns over demand from India and Japan lingered, putting a check on gains. Crude futures posted a weekly loss.
This article was compiled by BOV Asset Management Limited, a member of the BOV Group. BOV Asset Management,TG Complex, Suite 2, Level 3, Brewery Str., Mriehel BKR 3000. Email: infoassetmanagement@bov.com Internet address: www.bovassetmanagement.com. BOV Asset Management is licensed by the MFSA.