Europe’s benchmark equity index hit a record high on Tuesday, recovering all of its pandemic-driven losses as investors bet on a speedy global economic recovery, spurred by bumper stimulus spending and COVID-19 vaccination programmes.
European traders returned from a long weekend to push the STOXX 600 up 0.8% to 435.7 points. It has climbed more than 60% from last year’s lows and surpassed its previous all-time high of 433.90 points in February 2020.
The German DAX rose 1.1% to add to its recent record-setting rally, France’s CAC 40 was up 0.6%, also fully recovering from last year’s crash and UK’s FTSE 100 jumped 1.2%.
Wall Street’s main indexes notched all-time highs on Monday after data pointed to a strong U.S. labour market and business activity recovery, helping lift the global mood even as coronavirus cases spiked across the world. [.N]
“European equity markets have a higher percentage tilt to the more distressed cyclical and value parts of the market that performed poorly not only in 2020, but for several years before as well,” Niall Gallagher, investment director for European equities at GAM wrote in a note.