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European Shares Hit All-Time Highs Following High Commodity Trading Turnover

As the stock index of European stocks increased 0.5% on STOXX Europe 600 it closed at a record high of 460.57 points. The all-time high of European stocks has set a bright tone in the markets. Moreover, China’s regulatory moves have added to the positive mood and economic sentiment.

On Thursday the European stock market hit a record high following strong earnings from key commodities as well as Airbus and other corporations. Data reflecting record economic confidence in the eurozone in July added the positive sentiment.

Royal Dutch Shell, which is listed in the UK, rose 3.8%, while TotalEnergies of France rose 2.2%. As rising oil and gas prices increased their profits, both companies announced stock buybacks which resulted in the gain.

The star performers this year have been the miners and staying true to this the industry increased 2.4%. This was following an increase in Anglo American’s shareholder payments to a record $4.1 billion.

Airbus shares rose 0.6% because the largest aircraft manufacturer substantially raised its full-year supply and profit forecasts.

STOXX 600 index gained for the sixth consecutive month owing to strong quarterly earnings and optimism about the recovery of European business. Despite persistent inflation concerns and strict Chinese regulations, the reopening of the economy inter alia has put the STOXX 600 index on track.

According to an investment strategist at Bank of America, Milla Savova’s globally diversified stocks have achieved the highest earnings per share. However, Savova added that consumer stocks that are highly comparable to emerging markets were the weakest performers.

Savova also pointed out that the STOXX 600 Index Company’s inflation mention rate has increased by more than 400% in the past. This has left them at a record high in absolute terms.

As per Fed Chairman Jerome Powell, there was still some ground to cover by the US job market before the economic stimulus was withdrawn. The reassuring stance taken by the central banks afforded investors some ease.

The European Commission estimated that confidence in the common currency group composed of 19 countries increased to 119 points this month.

A senior economist Bert Colijn noted that the sentiment amongst businesses and consumers in the Eurozone has never been more optimistic. Coljin further added that this showed that the economic recovery was in full swing.

After consumer electronics company Nokia raised its full-year forecast due to substantial improvement in its business its stocks jumped 4.6%.

Volkswagen, Europe’s largest automaker, previously broke the record by raising its profit target in less than 3 months for the second time.

According to data from Refinitiv IBES, to date, about 41% of STOXX 600 companies have submitted reports. Out of this 67% have surpassed profits estimated by analysts. Usually, 51%  exceed forecasts regarding profit and earnings.

Among decliners was Swiss bank Credit Suisse, witnessing a decline of 2% after revealing an almost 80% drop in its earnings of the second quarter. It was reportedly hit by the outcome that the collapse of Archegos presented.

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