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European stocks climb on investor optimism over economic growth

The Stoxx 600 Europe Index added 0.2% by 8:05 a.m. in London, with miners, consumer products and technology sectors outperforming.

European Markets | Europe economy

Macarena Munoz | Bloomberg 

Traders before the opening of the German stock exchange in front of the empty DAX board, at the stock exchange in Frankfurt, Germany. (Photo: Reuters)
. (Photo: Reuters)

European stocks edged higher Friday, trimming some of this week’s losses, amid easing concerns about economic recovery and that tapering will be too quick.

The Stoxx 600 Europe Index added 0.2% by 8:05 a.m. in London, with miners, consumer products and technology sectors outperforming.

The main European benchmark is on track for a second weekly loss, the first time since the end of April, as investors reduced their risk allocations amid fears that central banks’ stimulus measures might get pulled back quickly. But while the European Central Bank on Thursday said it will slow down the pace of its pandemic bond-buying program, it reiterated that this move shouldn’t be seen as tapering.

Also helping the sentiment was the recovery in Chinese technology shares after a newspaper report clarified that Beijing was slowing down instead of halting new game approvals.

“Doubts about the recovery are overdone, the economic growth will be strong in 2021 and 2022, and the ECB yesterday delivered on what was expected,” said Ignacio Cantos, investment director at ATL Capital in Madrid. His firm has slightly reduced its clients’ exposure to European stocks to protect this year’s gains and he thinks a small correction could happen in the short term but remains positive on the asset class for the year-end.

Among individual mover highlights, Sampo Oyj gained as the biggest owner of Nordea Bank Abp said it plans a share buy-back program following its divestments in the lender.

For a daily wrap highlighting the biggest movers among EMEA stocks, click here

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First Published: Fri, September 10 2021. 15:20 IST