European stocks are trying to retain the momentum in November 2021 which is obtained from strong earnings in October 2021. The European stocks managed to touch record figures due to expectation of interest rate hikes, which in turn is supporting bank stocks. The pan-European STOXX 600 jumped to a record position of 478.87 points after making a gain of 0.7%. It was boosted by a leap in bank stocks by 1.4%. The boost was triggered by surging Euro zone bond yields due to the possibility of a rate hike by the European Central Bank (ECB) next year. The banking sector is delivering its best performance in the last two years.
The Spanish index rose by 1.4%, similarly, the Italian index made a gain of 1.2%. The German DAX managed to add 0.8%. Senior market analysts are confident that sufficient earning is generating an environment of optimism. The impressive performance of companies is bringing back the feel-good factor. The STOXX 600 performed impressively in October registering growth of 4.6%. The latest data clearly projects that the third quarter earnings of STOXX 600 is expected to make a gain of 52% when compared with last year. The smart investors even look for signals emerging from the US Federal Reserve. They are concerned about the tapering of stimulus measures that were taken during the pandemic.
The European Union and the USA decided to end a dispute over aluminium and steel tariffs. This development benefitted steelmaker Salzgitter and German conglomerate Thyssenkrupp. Salzgitter rose by 1.9% and Thyssenkrupp made a gain of 2.4%. Volkswagen rose by 0.4% and Britain’s FTSE 100 inches by 0.6%. Airlines such as Ryanair have started declaring quarterly profits for the first time after the outbreak of the pandemic. Ryanair made a gain of 1.2%.
The Dow Jones Industrial Average made impressive growth of 94.28 points and now stands at 35,913.84. The S & P 500 also made a gain of 0.2% and closed at 4,613.67. The Nasdaq Composite also hit a closing record after adding 0.6%. It was standing at 15,595.92. After touching a milestone of $1 trillion, Tesla continued to make gains. Its shares made a gain of about 8.5%. Ford made a gain of 5%. The performance of retailers and airlines was very impressive. According to analysts, the strengthening of global recovery is bringing the market on track. As the pandemic continues to decline, more and more people are back to their jobs. According to market experts, October’s employment report is likely to show some signs of improvement as hiring continues.