European Stock Markets Continue Recovery
Stock markets across Europe have performed strongly today, after several days of sluggish performance spawned by US economic worry.
At the close of trade today, markets across Europe have continued the growth seen yesterday after last week’s terrible performance on the US stock market.
The recovery in European stocks over this week has reversed last weeks trend of poor performance, coming from investor concern over the US economy.
With continuing problems in the housing market, and the ongoing commercial crisis in the sub-prime lending market, the US economy has done little to inspire investor confidence over the past few weeks.
And with the impact of poor company results in the US, and the resultant impact of trading on the major US stock markets, the rest of the world has suffered the knock-on effects of the situation across the pond.
By around mid-date today, the FTSE had risen by over 1.2% on the day to 6,263.40. Similarly the DAX rose by approaching 1%, and the CAC in Paris rose by just under 1.6% to 5,619.38.
The DJ Euro Stoxx 50 rose by almost 1.6% over the course of the morning, whilst the US Dow Jones continued growth in anticipation of the impending US interest rate decision.
Insurance in London was today booming as a series of good half-sales figures were unveiled, whilst airlines across Europe benefited from the tumbling oil prices after the major investment sell-off over the last few days.
Banks were also amongst some of the strongest traded securities, particularly in Frankfurt where Deutsche Bank and Commerzbank, the first and second largest in Germany impressed after easing sub-prime concerns in the US economy.
Analysts predict that the growth in Europe is to continue over the course of the week, as further company results are anticipated, and with an impending US interest rate decision.
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