The FTSEurofirst 300 index went past the limit up to a new five-year high earlier this week which was further assisted by a record peak on Wall Street, bolstering earnings and expectations from the United States Federal Reserve will maintain its easing policy.
Investor focus was modified by the Fed’s probable action after U.S. lawmakers resolved in their votes earlier this week to uplift the debt limit, averting a highly probable defaulting that many economists had forewarned could result to a tipping of the world’s largest economy back into the economic downturn.
Market players are have already begun to contemplate with regards to all the present dangers that were already deferred until the next year. There will probably be smooth clear sailing into the rest of the year according to a research conducted by BNP Paribas Fortis Global Markets.
Besides, the pan-European FTSEurofirst 300 index advanced for the eight straight sessions and was on the rise 0.1 % at 1,278.28 points following its move to the 1,278.75 level which was its highest since the mid-2008. The index tracked gains on the U.S. S&P 500, which concluded at an unsullied record high later this week.
Dutch paints and chemicals company Akzo Nobel soared 6 % after the results of its third-quarter core earnings narrowly missing the predictions made by analysts. However, the company reiterated that the improved performance programme was in fact on track and is underway for completion by the end of this year. Moreover, German business software producer SAP increased 5 % after they decided to stick to its full-year outlook.
The expectations are for a fairly adequate mix of solid company earnings and supportive macro figures, the outlook of the European companies should be looking good provided that the stabilising economy is carefully maintained despite the high risk of recession.