European equities rallied for the fourth straight week as investors overlooked the short-term damage from the virus and hoped for a quick economic recovery next year, while Spanish bank’s BBVA surged after ending merger talks with Banco Sabadell .
The pan-European STOXX 600 index closed 0.4 percent and weekly earnings reached 0.93 percent, led by tech companies and banks’ stocks, led by the rise of tech companies and banks for today’s session, and the shares of energy companies during the week thanks to high oil prices.
BPVA was up 4.2 percent and was one of the biggest risers on the reference index, while Sabadell stock fell 13 percent as the failure of the merger is expected to put pressure on the bank, which is considered its weakest link in a possible deal. .
The two banks were considering a deal to create Spain’s second largest domestic bank.
Investors’ view goes beyond the short-term risks to focus on faster economic growth next year and increase speculation on the market rally, even with the slightest easing of restrictions, with the expectation of more stimulus measures as the situation deteriorates. explains ETX Capital analyst Michael Baker.
The Stokes 600 is up 40 percent since its fall due to the Corona crisis in March, and the current month is set to be the best month on record, but the growth of virus infections in some European countries is holding back gains.