European stocks have seen better days than the dip they are currently experiencing. This dip has largely been due to the rising bond yields seen in the market. These have spurred hopes of seeing a solid economic recovery in the European markets. As of this past Thursday, the Dublin market closed virtually unchanged compared to recent numbers. Banks, on the other hand, had been affected more wildly with the Bank of Ireland up nearly 2.5% and the AIB up nearly 3.6%.
Housebuilders have also seen some changes in the market with Bairn Homes closing at nearly 1.9% higher. For other industries such as food stocks, Glanbia closed at nearly a 1.6% increase. For London’s Ftse 100 reversed, they were able to close with a relatively strong week. The total of the Gtse 100 index closed at 0.4% higher, which is the second consecutive week that investors have seen a rise despite the coronavirus still being prevalent. Even though there has been looser COVID-19 restrictions and the vaccination program picking up speed.
Other Bank stocks such as HSBC, Lloyds Banking Group, and Barclays have gained anywhere from 0.8%-3.6% this past week before closing.
While looking at Wall Street, the S&P 500 hit an all-time high before closing this last week. This causes inflation worries and more high-growth stocks. Many indexes on Wall Street are now set for their best week yet. The largest of the US fiscal stimulus bills were signed and this reinforced this mindset that the international economy is well on its way to recovery following the COVID-19 pandemic.
While this has all well, the pan-European Stoxx 600 on the other hand has fallen nearly 0.3% this past week after completing a four-session winning streak. Companies such as Prosus and Daimler have seen significant drops. Prosus holds nearly 1/3 of Chinese tech giant Tecent saw a drop of 6.7% this past week while Daimler saw a drop of nearly 2.0%. Other stocks such as Ital’s Brunello Cucinelli on the other hand saw a massive surge, growing nearly 8.2% after the luxury goods announced a rise in its sales that are being forecast for the next year as the pandemic is expected to come to an end.
Lucas Zhang was a Finance major at Ohio State University. He writes about finance, mortgages, and technology for Irish Mortgage Brokers.