Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

European Stocks Higher; DAX at New Record on Growth Prospects

Stock MarketsJan 08, 2021 03:35AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

By Peter Nurse 

Investing.com - European stock markets traded higher Friday, with investors looking beyond record deaths from Covid-19 and U.S. political turmoil, and pricing in a strong economic recovery in the second half of the year.

At 3:35 AM ET (0835 GMT), the DAX in Germany traded 1% higher, climbing to a record high, the CAC 40 in France rose 0.7% and the U.K.'s FTSE index climbed 0.2%. 

Wall Street also hit record highs on Thursday, and European markets benefited from this increased confidence. Investors are looking to the incoming Democratic-controlled U.S. government for additional fiscal spending, while European economies are also set to get a boost from the European Recovery Fund.

With this in mind, investors are prepared to overlook the rising number of Covid-19 cases: Germany recorded the most fatalities since the pandemic started, the associated national lockdowns throughout Europe and the hesitant start to the vaccination program. The U.S. also notched over 4,000 deaths in a single day for the first time.

Helping was a new study that indicated that the Pfizer/BioNTech vaccine is also effective against the new virulent strains of the virus found primarily in the U.K. and South Africa.

Additionally, late Thursday President Donald Trump finally conceded that President-elect Joe Biden would take control of the White House later this month, for the first time condemning the violence that broke out on Wednesday when his supporters stormed the U.S. Capitol while lawmakers were confirming Biden’s election victory.

Turning to economic data, German industrial production rose 0.9% in November, ahead of expectations, but the key economic release will be the December U.S. nonfarm payrolls number, after Wednesday’s ADP release suggested the country’s jobs recovery had ended.

In corporate news, Credit Suisse (SIX:CSGN) stock fell 1.6% after the Swiss banking giant said it expects to book a net loss for its fourth quarter after increasing its provisions for a long-running legal dispute in the United States by $850 million.

On a brighter note, STMicroelectronics NV (PA:STM) stock rose 4.1% after the chipmaker offered an early revenue estimate for the fourth-quarter above the previous range.

Oil prices edged higher Friday, continuing the bullish tone created by Saudi Arabia’s surprise announcement earlier this week that it would voluntarily cut output by one million barrels per day for the next two months.

This move has helped to allay worries over declining fuel demand due to the pandemic surge and the associated increase in restrictive measures.

U.S. crude futures traded 0.8% higher at $51.22 a barrel, while the international benchmark Brent contract rose 0.9% to $54.86. Both benchmarks are on track to post gains of around 5% this week, and are trading around the highest levels seen since February last year.

Elsewhere, gold futures fell 1.2% to $1,890.50/oz, while EUR/USD traded 0.4% lower at 1.2221.

 

European Stocks Higher; DAX at New Record on Growth Prospects
 

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.
Comments (4)
Djodmy Champagne
Djodmy Champagne Jan 08, 2021 8:51AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
good
Robert Mugabe
Robert Mugabe Jan 08, 2021 5:30AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
another empty nothing telling story
Tiberius Augustus
Tiberius Augustus Jan 08, 2021 5:19AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
I would suggest to the author and think mathematics would suggest the gdp has not moved to breakout even before the pandemic in the last 5yrs why would it now.
Wendy Muller
Wendy Muller Jan 08, 2021 4:45AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Print Germans print remember how it ended last time lol
 
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