After a rebound on Wall Street, European stocks are rallying.
European equities are surging after a Wall Street comeback.
Following Wall Street’s advances, European stock markets climbed on Wednesday as investors weighed the reopening of economies against fears of the coronavirus’s fast-spreading Delta strain.
An outbreak of viruses has rattled investor confidence in recent weeks, threatening the global economic recovery that had been backed by months of vaccines and enormous government and central bank financial backing.
Equities markets, which had been trading at record highs, lost support as dealers flocked to safe havens including US bonds, gold, and the Japanese yen.
On the other side, Wall Street recovered on Tuesday, with gains spreading across Europe and much of Asia on Wednesday.
“A solid return for US markets has filtered through to Europe,” says Joshua Mahony, senior market analyst at IG Trading Group.
On the other hand, the Delta type “will certainly gain in prominence over the world.” As a result, there are concerns that low-immunization-rate countries would be unable to cope without imposing harsh restrictions,” he said.
Official numbers released on Wednesday revealed that UK government borrowing reduced in June as a result of the lifting of lockdown measures, which stimulated the economy.
Experts, on the other hand, anticipate that borrowing costs will rise, with interest rates likely to rise sooner than expected when economies recover and inflation rises.
The majority of the lockdown measures in England were lifted on Monday, while stricter restrictions remain in place across the rest of the United Kingdom.
Oil prices rebounded in Wednesday’s commodities trade after previous losses due to lower demand growth predictions spurred by growing illness rates and OPEC and its partner producers’ decision to increase production.
“Oil is particularly vulnerable to intraday fluctuations in risk sentiment and will remain so for the rest of the week,” says Jeffrey Halley of OANDA.
In London, the FTSE 100 index surged 1.7 percent to 6,996.03 points.
In Frankfurt, the DAX 30 is up 0.8 percent at 15,343.42.
At 6,430.90, the CAC 40 in Paris is up 1.3 percent.
The EURO STOXX 50 index closed at 4,008.94, up 1.3 percent.
The Nikkei 225 index in Tokyo is trading at 27,548.00, up 0.6 percent. (close)
Hong Kong’s Hang Seng Index is down 0.1 percent at 27,224.58. (close)
The Shanghai Composite Index closed at 3,562.66, up 0.7 percent (close)
New York City – The Dow Jones Industrial Average is now at 34,511.99, up 1.6 percent. (close)
The euro/dollar was trading at $1.1773, down from $1.1780 at 2210 GMT.
The pound/dollar exchange rate is now $1.3606, down from $1.3620.
86.51 pence to the pound, up from 86.44 pence.
Dollar/yen rose to 110.11 yen from 109.87 yen.
Brent North Sea crude is up 1.6 percent to $70.47 a barrel.
West Texas Intermediate is up 1.6 percent to $68.27 per barrel.