FTSE Sees its Best Week since 2011
Friday saw European stocks closing with solid gains as the global stock recovery continued in the wake of the shocking Brexit vote. However, uncertainty remains as the United Kingdom and European Union still need to negotiate their divorce settlement.
The Euro STOXX 50 was up nearly 0.7 percent after a choppy trading session. Most sectors ended higher with only technology and healthcare stocks showing weakness. The FTSE, in London, jumped over one percent and gained seven percent on the week. Its best showing since December of 2011. Britain’s stocks have been rising since Bank of England (BoE) Governor Mark Carney gave a dovish speech saying the central bank could inject more stimulus in light of the UK referendum to leave the European Union.
European and FTSE Stocks to Watch
Fresnillo, listed on the British FTSE, surged 7.7 percent as silver prices rebounded to a two year high on Friday. In the commodity universe, most metals were higher boosting ArcelorMittal and Anglo American. Shares of BHP Billiton finished marginally lower after a Brazilian court held up a $6 billion over the Sarmarco iron ore catastrophe.
The best performing sector, in Europe, on Friday was the auto sector. Data showed that sales for new cars we up 0.8 percent in France for the month of June. After the data release, shares of French automakers rose. Renault was up 6.7 percent and Peugeot Citroen rose 4.7 percent on the day. Elsewhere, Volkswagen surged over four percent after the automaker said a court hearing ruled they could fix some 85,000 diesel polluting vehicles.
As far as economic data was concerned on Friday, the Eurozone released its unemployment data for the month of May. The figure fell to 10.1 percent. The number came out at 10.2 percent for April. The data was released by Eurostat.
While gains were seen in the global stock markets, uncertainty remains as the UK has yet to initiate formal divorce proceedings from the European Union. Article 50 has yet to be engaged. Once this happens, volatility should ensue once again.