The European economies are steadily recovering from the pandemic-led economic downturn. As all the sectors are functioning in full swing, the investors are riding on the wave of optimism. For the fourth consecutive week, European stocks registered impressive gains. The pan-European STOXX 600 indexes attained a record high of 476.16 in its tenth straight session. It inched up by 0.2% and the index matched its best winning streak in the last 15 years. For the first time ever, Germany's DAX index crossed the landmark of 16,000 points. Interestingly, France's CAC 40 index also managed to touch its highest level.
US and European stocks managed to hit record levels after they were supported by improvement in economic data and rising earning expectations. The markets in Asia are proceeding cautiously due to minor fluctuations. The investors are now eagerly waiting for decisions of the US Federal Reserve and central bank policy. Such crucial meetings give major clues about monetary policies. The investors have several questions in their mind as the equity markets have almost doubled and the bull market has lasted more than a decade. So, the investors are questioning how far the bull market can truly travel? It is now believed that value stocks are most likely to outperform growth stocks due to regulatory risks and higher inflation.
The Italian shares were trading at their highest figures in the last 13 years. Adidas managed to rise by 2.3% after announcing that it was selling Reebok. The deal was sealed at 2.1 billion euros ($2.5 billion) with the Authentic Brands Group. After accepting a takeover offer, the Pet supplies retailer Zooplus also rose by 41.1%. The offer was worth 3 billion euros ($3.5 billion). The travel and leisure sector are making major gains. As the restrictions are being eased, and the revenue of companies is rising steadily. The high order rates and burgeoning sales have generated hope in the heart of investors. Several companies in Europe reported impressive second-quarter growth. The benchmark STOXX 600 benefited from fresh peaks. Several important sectors such as financials and energy are instilling confidence in the investors. The investors are cheering earnings as the record streaks are continuously rolling.
In Asia, the Chinese shares edged higher. Although there are minor fluctuations due to miscellaneous factors, economic recovery is steady. The Chinese central bank is also injecting mammoth loans in the financial system to retain the economic recovery.
The bullion has held some ground as the market sentiments and concerns of the investors stroked the demand. The bullion is regarded as a haven asset. Whenever there are small economic fluctuations, the investors immediately turn towards this precious metal. The Gold spot price was standing at USD 1,779.65.