European Stocks Set for Sixth Consecutive Week of Gains
European stock markets are on a winning streak, with the pan-European STOXX 600 index rising by 0.3% on Friday morning. This marks its sixth consecutive week of gains, driven by easing bond yields and stronger-than-expected economic data.
In the UK, the FTSE 100 index climbed 0.4% following a surprising 1.2% increase in retail sales for April, surpassing expectations. Similarly, Germany’s DAX index rose 0.4%, reaching near-record highs after data showed better-than-expected economic growth in the first quarter.
Corporate earnings also contributed to the positive sentiment. British investment platform AJ Bell’s shares surged nearly 10% after reporting a 12% year-over-year profit increase, thanks to heightened client activity. Meanwhile, Michelin’s stock gained 0.9% following an upgrade to “buy” by Jefferies, citing strong earnings growth potential.
Despite concerns earlier in the week over rising U.S. Treasury yields and weak eurozone business activity, markets found relief as bond yields subsided, boosting investor confidence.
Impact: If economic data continues to improve and bond yields remain stable, European stocks might maintain their upward momentum. However, any unexpected geopolitical tensions or economic downturns could pose risks to this positive trend.