European markets surge at week’s end benefiting from global gains

European markets were higher on Friday, capping off a strong week for global stocks. The pan-European Stoxx 600 index rose by 0.2% in early trading, driven mainly by a 1.1% increase in auto stocks. Over the week, the index gained more than 2%, marking its best weekly performance since 10 May.

In the United States, stocks also experienced notable gains, particularly on Thursday when weekly jobless claims fell, and retail sales data exceeded expectations. This eased fears of a U.S. recession, which had contributed to a significant global sell-off earlier in the month. Analysts suggest that the recent market volatility may also be linked to the typical August trend of lighter trading volumes, combined with effects from Japanese monetary policy decisions.

Although both the Stoxx 600 and Wall Street’s S&P 500 have yet to return to the levels seen at the start of the month, the consistent gains throughout the week have helped recover losses from earlier declines.

On Friday, U.K. retail sales data showed a recovery, with a 0.5% growth in July, following a 0.9% drop in June. Over the past three months, sales volumes rose by 1.1%, meeting expectations from a Reuters poll. However, according to Alex Kerr, a U.K. economist at Capital Economics, the retail rebound was not widespread, with sectors like food, clothing, and household goods underperforming. Kerr noted that rising real incomes, driven by decreasing inflation, are expected to boost consumer spending for the remainder of the year.

This positive retail data followed a report of U.K. inflation increasing to 2.2% in July, a smaller rise than anticipated, alongside a 0.6% economic growth in the second quarter. On the currency front, the British pound reached its highest level in two weeks against the U.S. dollar, rising by 0.24% to $1.288, and it also gained slightly against the euro.

The positive sentiment from the U.S. also influenced Asia-Pacific markets, which traded higher on Friday.

Fidelity European Trust PLC (LON:FEV) aims to be the cornerstone long-term investment of choice for those seeking European exposure across market cycles.

Click to view all articles for the EPIC:
Or click to view the full company profile:
Facebook
X
LinkedIn
Fidelity European Trust

More articles like this

Fidelity European Trust

European markets open strong as optimism rises

European stocks started the week with gains, driven by positive global market sentiment. In early trading, Germany’s DAX climbed by 0.7%, France’s CAC 40 saw a rise of 0.8%, and the UK’s FTSE 100 gained 0.4%.

Fidelity European Trust

Building a strong data economy for Europe’s future

The European Union is determined to establish a robust data economy as a foundation for its global competitiveness and digital independence. In the automotive industry, data is already transforming technologies, with innovations such as real-time traffic

Fidelity European Trust

European stocks begin the week with gains

European stocks rose on Monday, with the pan-European Stoxx 600 index up 1.2% by mid-morning in London. All sectors were in positive territory, led by construction and materials stocks, which gained over 2%. This upturn followed

Fidelity European Trust

Election week boosts European markets

European markets opened the week on a positive note, climbing on Monday after a slow start. Investors are keeping a close watch on the U.S. presidential election scheduled for Tuesday, with significant implications for markets across

Fidelity European Trust

European stocks hold steady amid improved market sentiment

European stocks remained largely unchanged as easing tensions in the Middle East brought some optimism, though declining oil prices exerted pressure on the energy sector. By mid-morning in London, the Stoxx Europe 600 Index had flattened

Fidelity European Trust

European stock market and the economic outlook

The European stock market has shown resilience despite global economic challenges in recent years. It continues to be a key focus for investors due to the region’s established financial infrastructure and the strength of its major

Fidelity European Trust

Eurozone retail sales show modest growth in August

Retail sales in the eurozone experienced a modest increase in August, showing a recovery after a stagnant performance in July. According to recent data from Eurostat, retail trade volumes in the euro area grew by 0.2%

Fidelity European Trust

European stocks climb amid global market struggles

European stocks saw an increase on Monday, defying the negative trends observed in both Wall Street and Asia-Pacific markets. By mid-morning in London, the pan-European Stoxx 600 index had risen by 0.57%, with most sectors and

Fidelity European Trust

A growing number of European businesses embrace AI

Over the past year, the adoption of AI by European businesses has grown by 32%, and this trend, if sustained, could add €600 billion in gross value added (GVA) to the European economy by 2030. This