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Prosperity Investment Management provides you with a weekly update from markets across the globe.
Starting in Europe, shares climbed on stronger-than-expected earnings results and growing confidence in an economic recovery as the UK, Belgium and the Netherlands continue to ease coronavirus restrictions. In local currency terms, the pan-European STOXX Europe 600 Index ended the week 1.72% higher. The German and French stock indexes rose by more than 1.5%. Italy’s FTSE MIB Index added 1.95%. The UK’s FTSE 100 Index gained 2.29%.
In the US, earnings season continued to wind down over the week, with 442 of the S&P 500 companies expected to have reported first-quarter results by the end of the week. Earnings over the quarter have generally surpassed analysts’ estimates by a wide margin, with analysts polled by FactSet currently expecting overall profits for the S&P 500 to have grown by over 49% relative to the year before.
In China, mainland markets reopened last Thursday after being closed for the Labour Day holiday. Consumer stocks were among the best performers as preliminary holiday sales and travel data were positively received by investors, though a 40% surge in tourism in Macau was seen as disappointing. The yield on China’s 10-year sovereign bond declined three basis points to 3.17%. China’s economy has peaked in momentum terms, according to some analysts, a view that has supported those who think that bond yields in China may also be near a peak.
