Upbeat economic data helps European shares snap losing run – Gulf Today

Upbeat economic data helps European shares snap losing run – Gulf Today

Upbeat economic data helps European shares snap losing run

an hour ago

The German share price index DAX graph is pictured at the stock exchange in Frankfurt on Friday. Reuters

European shares rose on Friday after upbeat industrial output data from Italy and France raised hopes of an economic recovery, even as a spike in coronavirus cases around the world kept gains in check.

Breaking a three-day losing streak, the pan-European STOXX 600 closed up 0.9%, with Italian shares leading with a 1.3% jump.

Milan stocks were boosted by Italy reporting a rise in production of 42.1% in May from the month before, almost double of what economists were predicting, with the economy minister forecasting further gains in June and July.

"The last batch of hard data is somewhat comforting,“ said Paolo Pizzoli, senior economist, EMU, Italy, Greece at ING.

"Both production and retail sales data for May have shown that reopening after the strict lockdown was quick. This should, in principle, reduce the risk of an extreme GDP contraction in the second quarter.“ However, he warned that as most of the reopening in the manufacturing domain was completed in May, June data will have limited room for a rise in production.

France's CAC 40 rose