Recovery hopes take bourses higher
Ivar M Simensen, Ft Investor
Published: March 4 2002 08:47 | Last Updated: March 4 2002 17:41
news.ft.com
European stock markets ended sharply higher on Monday after last week's encouraging economic data fuelled hopes that the economic recovery is underway.
Technology equipment makers topped the gainers list in Europe, as the Nasdaq extended Friday's 4.1 per cent gain.
Nokia and Alcatel, the Finnish and French telecoms equipment maker, rose 6.9 per cent and 7.1 per cent respectively, taking the pan-European FTSE Eurotop 100 2 per cent higher.
STMicroelectronics, the Franco-Italian chipmaker, jumped 7.1 per cent and Infineon of Germany added 6 per cent. ASML, the Dutch chip equipment maker, ended 6.9 per cent higher.
Last week saw a rise in business confidence and a return to growth in UK and US manufacturing activity, taking the stocks on both sides of the Atlantic firmly higher over the week.
George Hodgson, European equity strategist with ABN Amro, said: "The macroeconomics are certainly encouraging, the recovery is coming through." But he added an economic recovery would not automatically lead to a re-rating of European equities.
"There are two cycles out there. The macroeconomic cycle, which at least in Europe has been relatively mild, and the corporate cycle, which has been this spectacular boom and bust. It is difficult to see what can push this market convincingly on until the corporate sector has sorted out its funding position," Mr Hodgson said. |
