European markets continue to climb

Stock markets across Europe are continuing to rise on the back of Monday’s vaccine hopes.

London’s FTSE has gained over 7% this week and this afternoon was up 62 points at 6358.

Contributing to this rise was IAG shares (LON: IAG), which were up 7% at 147,05.

Other risers on Wednesday included Kingfisher and Ocado, which rose 5% and 3.45% respectively.

European markets are continuing to make gains, with the DAX up 58 points or 0.45% at 13,221, the CAC up 28 points or 0.6% at 5448, and Italy’s FTSE MIB up 181 points or 0.8% at 21,033.

“This week’s momentous news of a potentially successful vaccine for COVID-19 has triggered one of the biggest rotations in asset markets in recent memory,” said Geoff Yu, senior market strategist at BNY Mellon.

“Unsurprisingly, the eurozone equities market has been a major beneficiary as its value heavy components finally found favor,” he added.

Goldman Sachs analysts said in a note to clients today that they expect shares to continue their recovery over the next year.

“Our economists expect growth to show a marked acceleration from the end of 1Q as lockdowns ease and populations start to be vaccinated; European and global growth next year should be close to 6%,” said analysts from Goldman Sachs.

“The recent positive news on vaccine efficacy from Pfizer supports their view.”

“We forecast S&P 500 will climb by 16% to 4300 at year-end 2021 and gain 7% to reach 4600 by the end of 2022. The market is actually less dependent on the performance of a few mega-cap stocks than many investors perceive.”

On Wall Street, tech stocks are rising. Microsoft is up 2.6% and is up 3.5%.

Previous articleRenold shares surge thanks to “resilient margin performance”
Next articleHave Tech Stocks had their day in the sun?
Safiya focuses on business and political stories for UK Investor Magazine. Her interests include international development, travel and politics.