European Equities Trade Higher; Aided By Optimism Over Economic Growth

European Equities Trade Higher; Aided By Optimism Over Economic Growth

04 May 2021 02:49 PM
 

European equities traded higher today, aided by optimism that the region is finally turning the corner as its economies reopen.

The DAX in Germany traded 0.4% lower, while the CAC 40 in France climbed 0.1% and the U.K.’s FTSE 100 rose 0.6%, after a holiday-extended weekend.

EUR/USD has extended its gains toward 1.20 as the safe-haven dollar gains ground. Fed Chair Powell described the recovery as "patchy" and worries about the virus are also weighing on investors.

Confidence is growing throughout Europe over its recovery from the pandemic as the rate of vaccination in EU member states rises quickly.

The one fly in the ointment is Asia, and India in particular. The country’s second wave of Covid-19 infections shows no signs of slowing down, with the number of reported cases topping 20 million earlier Tuesday. The World Health Organization stated last week that one in every three new coronavirus cases globally is being reported in India.