European stocks bullish, S&P 500 edges hits record
Boris Johnson (L) has welcomed Joe Biden to England for the G7 summit in Cornwall, where leaders will discuss a range of issues including China. They have already pledged a billion doses of vaccine to the world's poorest countries
New York. European stock markets closed the week in a bullish mood Friday, while the S&P 500 edged to a second straight record as investors weighed US consumer confidence and inflation data.
Equity markets in Paris and Frankfurt cheered a day after the European Central Bank adopted a dovish policy posture even as it raised its growth forecast.
ECB chief Christine Lagarde on Thursday said it would be “too early and premature” to discuss tightening monetary policy, even as officials lifted their annual inflation outlook.
“European markets have ripped higher to close the week in a bullish mood,” Fawad Razaqzada, analyst at ThinkMarkets, told AFP.
“With the central bank covering their backs, investors bought every single short-term dip in stocks, causing the Euro Stoxx 50 and the CAC 40 to hit new highs for the year on Friday, with the German DAX also nearing its record high hit last week.”
Britain’s economic recovery, meanwhile, is gathering pace, with GDP growing by 2.3 percent in April alone as the UK government eased its lockdown, according to official data released Friday.
Back in the US markets, major indices finished a choppy session with modest gains.
A report released Friday from the University of Michigan showed a rise in consumer confidence as the widespread availability of Covid-19 vaccines brought shoppers back to stores.
“Looking ahead, we expect consumers will be more upbeat as the economy continues reopening and employment conditions heal further,” Oxford Economics said in a note.
“Current pandemic-related supply constraints will steadily ease, supporting a healthier labor market and easing price pressures as economic dynamics normalize.” (AFP)
