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European stocks log best winning streak since 2006, fourth week of gains

Stock Markets Aug 13, 2021 12:11PM ET
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© Reuters. The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany August 12, 2021. REUTERS/Staff
 
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By Sruthi Shankar and Shreyashi Sanyal

(Reuters) -European stocks scaled new highs on Friday and clocked their fourth consecutive week of gains on optimism over a strong earnings season and steady recovery from the pandemic-led economic downturn.

The pan-European STOXX 600 index inched up 0.2% to a record high of 476.16, for the tenth straight session. The index has now matched its best winning streak since December 2006.

While the pace of gains has slowed due to thin summer trading, the index has logged nine-day gaining streaks seven times in the past fifteen years.

Germany's DAX index ticked above 16,000 points for the first time ever, while France's CAC 40 index index touched its highest level in nearly 21 years.

Both European and U.S. stocks hit record levels this week, supported by rising earnings expectations and improving economic data, even as Asian equities were held back by worries about Chinese regulation and the fast-spreading Delta variant of the coronavirus.

"If investors are concerned about rising Delta variant cases globally there's little evidence that it is prompting any undue worry, although markets in Asia have been a little more cautious," said Michael Hewson, chief market analyst at CMC Markets UK.

Meanwhile, speculation that the U.S. Federal Reserve could soon start to unwind its bond-buying stimulus calmed a bit following tame U.S. consumer prices data this week.

Focus will be on the minutes from the U.S. central bank's last policy meeting next week for clues on the outlook for monetary policy.

"With equity markets almost doubling since the start of the pandemic and a bull market lasting over a decade, investors are questioning how far the bull market can rally," said Geir Lode, head of global equities at the international business of Federated Hermes (NYSE:FHI).

"With higher inflation and regulatory risk we believe value stocks will outperform growth stocks," said Lode, adding that he expects stronger earnings growth among mid-cap and smaller companies versus the mega-cap growth companies.

Italian shares were also trading near their highest since September 2008.

Adidas (OTC:ADDYY) rose 2.3% after it said it was selling Reebok to Authentic Brands Group for up to 2.1 billion euros ($2.5 billion).

Pet supplies retailer Zooplus shot up 41.1% after it accepted a takeover offer worth around 3 billion euros ($3.5 billion) from U.S. private equity firm Hellman & Friedman.

French healthcare company Ipsen tumbled 12.7% after it withdrew a U.S. application for palovarotene, its treatment for an extremely rare disease that causes muscles and tissue to turn to bone.

European stocks log best winning streak since 2006, fourth week of gains
 

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Comments (5)
perplexed76 .
perplexed76 . Aug 13, 2021 1:26PM ET
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financial disney circus
Aug 13, 2021 5:06AM ET
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and when gdp data going to come out its going to be small green or red lol wonder how the ******they doing this
soho electronics
soho electronics Aug 13, 2021 5:03AM ET
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too many shorts in the market artificially pumping up DAX. the only way is up until shorts get wiped out!!
Larry DeAngelis
Larry DeAngelis Aug 13, 2021 5:03AM ET
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You are right about that! The Dax is even more overvalued than the US!
Thuan Bui
Thuan Bui Aug 13, 2021 5:03AM ET
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Larry DeAngelis you seen tech and Dow? hehe
Francesco Lucchesi
Francesco Lucchesi Aug 13, 2021 5:03AM ET
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no the us indices are by far the most overvalued
Larry DeAngelis
Larry DeAngelis Aug 13, 2021 4:58AM ET
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Replay of Aug.1987 price action just before the crash! That yearpeaked on Aug.25. Look for a top beginning on Aug.19-25. The difference this time is that themarket is not a free market. It is programmed to only go up . Totalgarbage!
Biji Rajaku
Biji Rajaku Aug 13, 2021 4:07AM ET
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you know I win
 
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