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June 12, 2021

European shares closed high of the last six years

European stocks posted a second weekly advance, with the benchmark index reaching a six-year high, as mining companies rallied and the World Bank’s upgrade of global-growth forecasts offset concern over valuations, bloomberg.com informs. Bucharest Stock Exchange (BVB) increased by only 0.19 per cent in Friday session, in a market with low turnovers, liquidity being supported in the proportion of one-third of transactions with BRD shares, according to Mediafax.
PSA Peugeot Citroen led the gain, completing its biggest weekly increase in eight months. Rio Tinto Group helped a gauge of commodity producers surge the most in two years after Citigroup Inc. made a bullish case for the industry. Deutsche Bank AG climbed 6.8 per cent, tracking European lenders higher, as an international supervisory group eased minimum-capital norms. Ashmore Group Plc dropped 13 per cent after clients withdrew USD 3.5 billion from the emerging-markets money manager.
The Stoxx Europe 600 Index rose 1.8 per cent to 335.82 this week. The measure has added 2.3 per cent since the start of 2014, after a 17 per cent rally last year, as central banks pledged continued support for the economic recovery. That sent the gauge’s price-to-earnings ratio, based on its members’ estimated earnings, to 14.1, above the five-year average of 12.1.
“The World Bank’s growth forecasts were the first trigger which made markets such as Germany jump to new highs,” Soeren Steinert, who helps manage about USD 24 billion as associate director for equities trading at Quoniam Asset Management GmbH in Frankfurt, said. “Investors not wishing to miss out on ongoing gains were squeezed back into the market.”
National benchmark indexes rose in 16 of the 18 western European markets. The U.K.’s FTSE 100 gained 1.3 per cent. Germany’s DAX advanced 2.9 per cent, for the best performance among the developed markets tracked by Bloomberg. France’s CAC 40 (CAC) increased 1.8 per cent.
A gauge of mining companies posted the best performance among the 19 industry groups on the Stoxx 600, rising 7 per cent, the biggest increase since 2011. Citigroup turned bullish on European miners for the first time in three years.

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