European Markets Hit All-Time Highs Alongside Dow’s 8-Day Winning Streak

News Desk 

News York: Despite lackluster US consumer data, Wall Street stocks mostly rose, capping off a successful week amid growing optimism about potential monetary policy adjustments on Friday. European markets also saw gains, reaching new highs, while the Dow extended its winning streak in New York for an eighth consecutive session.

In April, the University of Michigan’s consumer sentiment index dropped by 13 percent to 67.4, marking its lowest level since November. Concerns about inflation, unemployment, and interest rates were cited as contributing factors. This follows an increase in weekly US jobless claims reported the day before.

Analysts noted that investors tend to interpret weaker data as increasing the likelihood of a Federal Reserve interest rate cut. However, Oxford Economics pointed out that while the US labor market has been a significant source of strength, there are signs of a slowdown rather than an impending downturn that could disrupt the recovery.

European stock markets also reached record highs, fueled by optimism about potential interest rate cuts by central banks. London, Paris, Frankfurt, and Amsterdam all achieved new peaks, buoyed by strong first-quarter earnings. Despite concerns about a potential resurgence in UK growth affecting the Bank of England’s stance, European markets remained optimistic.

In the UK, official data showed better-than-expected growth in the first quarter, signaling the end of a shallow recession and providing a boost to Prime Minister Rishi Sunak ahead of the upcoming general election. The Bank of England indicated a possible rate cut this summer, having kept borrowing costs at their highest level in 16 years to combat inflation.

Meanwhile, the European Central Bank is anticipated to lower its rates in June. Asian investors responded positively to Wall Street’s performance on Thursday, driving regional stocks higher before the weekend. Hong Kong, in particular, continued its strong performance, entering a bull market after a significant climb from its January lows. This was further supported by news of potential tax exemptions on mainland stock dividends purchased through the Hong Kong exchange.