Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Auto rally, corporate earnings push European shares to record highs

EconomyJul 23, 2021 12:21PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, October 12, 2020. REUTERS/Staff

By Sruthi Shankar and Susan Mathew

(Reuters) -European stocks closed at all-time highs on Friday as optimism about the earnings season and the European Central Bank's pledge of continued monetary support outweighed risks of a resurgence in COVID-19 cases.

The pan-European STOXX 600 index rallied 1.1% to hit a record high of 461.75, and marked a 1.5% weekly rise - its biggest weekly gain since early May.

Automakers were the top gainers, up 2.5%.

Mercedes-Benz maker Daimler (OTC:DDAIF) gained 5.5% after Kepler Cheuvreux upgraded its stock to "buy", saying its growth is not properly reflected in the share price.

French car parts maker Valeo (PA:VLOF) jumped 6% after it posted higher first-half sales and profit, and said it expected the shortage of key technology chips to ease.

Peers Faurecia and Continental AG (OTC:CTTAY) rose more than 3% each.

A bout of selling hit financial markets on Monday as investors grew nervous about the fast-spreading Delta variant of COVID-19 hampering a global economic recovery.

However, strong earnings reports and the ECB's commitment keep interest rates at record lows for even longer pushed the benchmark STOXX 600 higher every day since then.

"The Monday selloff seems like a moment of brief panic, and ... was enough, it appears, to reset sentiment and activity and prompt a resurgence of bullish momentum. Central bank(s) have done their bit to allay fears, most notably the ECB this week," said Chris Beauchamp, chief market analyst at online trader IG.

The focus next week will be on the U.S. Federal Reserve's two-day meeting. Chair Jerome Powell's dovish stance so far has helped markets stay on an upward trajectory.

Rafale jets maker Dassault Aviation climbed 4.5% on reporting higher sales and profits in the first half, while UK's Vodafone (NASDAQ:VOD) rose 2.4% after a service revenue beat.

Chip equipment maker ASML hit a fresh record high as strong earnings forecast earlier this week prompted brokerages to hike their price target.

"We believe that European markets will benefit from the growth recovery in the second half of the year," said Esty Dwek, head of global market strategy at Natixis Investment Managers.

Euro zone business activity expanded at its fastest monthly pace in over two decades in July, IHS Markit's flash survey showed, but fears of another wave of infections hit business confidence.

German Purchasing Managers' Index (PMI) hit its highest level in nearly a quarter of a century, creating inflationary bottlenecks.

Danske Bank slid 4.3% on dismal return on equity declined in the first quarter, while Norwegian solar energy company Scatec slumped 16.2% after a core profit miss.

Auto rally, corporate earnings push European shares to record highs
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email