On Monday, July 5, EU stocks climbed as investors expect that the region’s economic recovery will be positive in the second quarter of 2021.
The pan-European STOXX 600 opened with a 52-week high of $460.51, rising 0.26% or 1.18 points at $456.81 per share. The index is up over 14% year-to-date, and Wall Street bank projected that it would spike 10% in the next 12 months.
Consequently, the Euro STOXX 50 also smashed 0.13% or a net increase of $5.42. This sent the stocks higher at $4,084.31 per share while opening positive on its 52-week high of $4,165.59.
Also, the STOXX Europe 50 rose 0.21% or 17.72 points sending the stocks higher to $8,516.54, and it opened its 52-week high at $8,633.02
In London, the FTSE All-Share index hopped 0.09% or a net increase of $3.50, which sent the stocks above to $4,065.95 per share. It previously closed at its 52-week low of $3,126.31, while it opened today at its 52-week high of $4,107.40.
Meanwhile, in Germany, its DAX Performance index opened 0.30% higher with a net spike of $46.28. This sent the stocks higher to $15,650.09 per share.
In addition, the MDAX progressed 0.61% or 208.47 points sending the stocks above $34,462.97 per share.
An analyst stated that most investment banks are backing up the EU stocks to outperform their U.S. counterparts. This should last until the end of 2021 and into 2022 due to European Union’s fast economic recovery and historic stimulus coverage.
Economic Data
The euro zone’s recent economic data suggest that its bounce back gathers steam following its sluggish beginning. This is due to the continuous lockdown in the region and the slow pace of coronavirus rollout.
Last week, the region’s Purchasing Managers’ Index readings came in at their highest recorded data. An analyst said that this implied a rapid growth in business activity across the region last June. In addition, it also offers the latest in a series of positive data surprises, which led to tangible moves from investors.
For six years, mutual funds that flow into the European stocks year-to-date have been at their strongest so far. As a comparison, the U.S. and Asian investors are reversing the latest trends to become the net buyers of EU shares.
Read also: Coinbase Review | Should you choose Coinbase?
