European stocks closed higher on Friday, extending recent gains, amid continued optimism about global economic recovery thanks to fairly upbeat data from China, the U.S. and Europe.
Strong results from some top name U.S. and European companies contributed as well to the positive mood in the markets.
The pan European Stoxx 600 climbed 0.9%. The U.K.’s FTSE 100 ended 0.52% up, Germany’s DAX gained 1.34%, France’s CAC 40 surged up 0.85% and Switzerland’s SMI ended higher by 0.57%.
Among other markets in Europe, Austria, Belgium, Czech Republic, Denmark, Finland, Iceland, Ireland, Netherlands, Norway, Portugal, Russia, Spain and Sweden ended with strong gains.
Greece and Poland closed weak, while Turkey and Ukraine ended flat.
Automobile stocks rallied after industry data showed Europe’s new car registrations surged in March due to last year’s exceptionally low base of comparison caused by the strict Covid-19 restrictions introduced in most markets in March 2020.
Registrations of new passenger cars increased 87.3% annually, in contrast to February’s 19.3% decline.
In the UK market, Everaz, Tesco, Next, British American Tobacco, Natwest Group, BT Group, Melrose, Barclays Group and Flutter Entertainment gained 2 to 4%.
Online supermarket Ocado Group shares gained nearly 2%. The company announced that it has commercially partnered with Oxford -based autonomous vehicle software company Oxbotica Ltd to develop a range of vehicles that will be integrated into the Ocado smart platform.
Rolls-Royce Holdings, Hikma Pharmaceuticals, ICP and Barratt Developments declined sharply.
In the French market, Valeo, ArcelorMittal, Safran, Renault, Air France-KLM, BNP Paribas and LVMH gained 2 to 4%. Publicis Groupe, Veolia and Hermes International also ended notably higher.
In Germany, Siemens moved up more than 4%. Daimler rallied 2.5% after its preliminary results for the first-quarter of 2021 came in significantly above market expectations, driven by higher vehicle prices and strong demand for its Mercedes-Benz cars, particularly in China.
Covestro, Continental, Volkswagen, Deutsche Bank, Bayer and BASF gained 2 to 3%. HeidelbergCement shares rose sharply after the company said that its preliminary results for the first quarter of 2021 were significantly above market expectations.
Dutch bank ING gained notable ground in positive territory after announcing its plan to separate the Management Board Banking roles for technology and operations.
In economic releases, Eurozone consumer prices increased as initially estimated in March, final data from Eurostat showed.
Inflation accelerated to 1.3% in March from 0.9% in February. This was the third consecutive rise in prices and matched flash estimate released on March 31.
The euro area trade surplus declined in February as exports decreased amid rising imports, Eurostat reported. The trade surplus rose to a seasonally adjusted EUR 18.4 billion in February from EUR 28.7 billion in January. Exports decreased 2.5% month-on-month, while imports were up 3.4% in February.
Switzerland’s producer and import prices declined in March, data from the Federal Statistical Office showed. Producer and import prices fell 0.2% year-on-year in March. The producer price index declined 0.4% annually in March and import prices increased 0.1%.
The U.S. and China, both have reported strong surge in retail sales in March.
Market Analysis
European Stocks Close Higher Again On Recovery Optimism
2021-04-16 17:50:40
