The Malta Independent on Sunday
European stocks post their second consecutive week of gains
European stocks posted a second consecutive week of gains on Friday as bumper forecasts from Denmark’s Pandora and Novo Nordisk set a brighter tone for the earnings season, while investors kept an eye out for signs of fresh U.S. stimulus.
The STOXX 600 index ended up 0.6% to close the week with a gain of 2.1%. Global equities advanced this week as growing expectations the Democratic party will win U.S. elections next month revived hopes for more economic stimulus there.
In Europe, a string of mergers and acquisitions as well as a rebound in beaten-down sectors like travel & leisure, banks and oil & gas lifted regional markets. Shares of aircraft engine maker Rolls Royce have almost doubled in value since Monday, while British Airways owner-IAG jumped 13.2%. Jewellery maker Pandora rose 17.2% to the top of STOXX 600 on Friday after hiking its profit guidance on stronger sales and a big boost to its online business.
Companies on the STOXX 600 are expected to post a profit decline of 38% in third quarter and 22.7% in the current quarter, according to Refinitiv data, as businesses recoup from the coronavirus-driven hit.
Europe surpassed 100,000 daily reported COVID-19 cases for the first time on Thursday, after countries such as Russia and United Kingdom saw no respite in the mounting number of infections every day in the past five days.
However, UK stocks got a boost as British finance minister Rishi Sunak announced his latest programme to try to stave off a surge in unemployment.
U.S. stocks joined their global counterparts in the black and were on track for weekly gains on Friday as ongoing fiscal aid talks and growing expectations for Democratic election victories revived hopes over economic stimulus.
Gold surged, and the dollar dropped as investors bet on the increased probability of forthcoming coronavirus relief. Wrangling in Washington over pandemic aid has dominated markets this week, which began with President Donald Trump halting negotiations on a comprehensive aid package.