The Malta Independent on Sunday
European shares close to record highs in short week
European shares rose to near record highs in a shortened trading week on optimism about a speedy economic recovery. Expectations for U.S. infrastructure spending helped ease concerns of a longer-than-anticipated lockdown in Europe.
The pan-European STOXX Europe 600 Index, France’s CAC 40 Index and Italy’s FTSE MIB were close to 2% higher, while Germany’s DAX Index rose about 3.0%. The UK’s FTSE 100 Index was little changed.
Eurozone government bond yields ended generally higher. They rose early in the week with U.S Treasuries, which sold off on expectations of more U.S. fiscal stimulus and U.S. vaccination progress. However, surging coronavirus cases in Europe amid vaccine rollout challenges and widened lockdown measures in some countries, including France, drove demand for bonds, causing yields to fall midweek onward.
French President Emmanuel Macron decreed a third nationwide lockdown that will last a month to curb a jump in coronavirus infections across the country. The Irish government said it would lift restrictions at a slower pace than previously planned because its vaccination campaign has been held back by a shortfall in supplies from AstraZeneca. The government had planned a wider reopening of the economy on April 5 but will now postpone most steps until May.
Inflation in the 19 countries of the eurozone quickened in March to 1.3% from 0.9% in February on higher energy and nonprocessed food prices, according to an official flash estimate. The European Central Bank has said there would be a temporary spike in inflation, which will then slow to well below the 2% target in the years ahead.
Japanese equities began the week positively as investors continued to look for bargains following the sharp market decline early last week. Japanese markets were also buoyed late by technology stocks, mirroring gains on the tech-heavy Nasdaq index. The benchmark Nikkei 225 Stock Average finished ahead 0.7% for the week, while the broader TOPIX closed around 1% lower.
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.