The Malta Independent on Sunday
European stocks end week close to all time high
European stocks ended the week close to all-time highs, with miners prominent as investors shrugged off worries about a third wave of coronavirus infections and focused on prospects of a solid global economic recovery.
The pan-European STOXX 600 index rose 0.8% on Friday, just enough to register its fourth straight weekly rise and seven points short of a record high. Mining and oil & gas stocks gave the biggest boost to the index, while defensive sectors including healthcare and utilities were slightly down.
Led by chipmakers, notably ASML and ASM International, the STOXX 600 tech index rose 2.7%, posting its biggest weekly gain since early November.
Trading earlier in the week was subdued by worries about new lockdowns and a slow pace of vaccination in the euro zone, but optimism about a stimulus-driven recovery in the United States brightened the outlook for global growth.
Though the market has been driven mainly by third wave concerns and slower vaccinations in continental Europe over the past week, supply is seen to be picking up sharply over the next few weeks.
Morgan Stanley said global equities should slow down but Europe was poised to outperform relative to other markets, as it expects the region’s relative economic momentum to improve over the next 3-6 months.
Global equity benchmarks and oil prices jumped on Friday while safe havens such as the dollar and U.S. Treasuries dipped as hopes for a global economic recovery overshadowed the continued blockage of one of the world’s most vital shipping lanes.
More than 30 oil tankers are waiting to traverse the Suez Canal, which has been blocked since Wednesday after a container ship ran aground. It may take weeks to free the beached vessel, though analysts said low seasonal demand for oil may mitigate the impact of the blockade on energy prices.
U.S. crude rose 3.89% to $60.84 per barrel and Brent was at $64.45, up 4.04% on the day.
Spot gold added 0.3% $1,731.89 an ounce. to
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.