The markets in Asia have started the new trading week on a positive note. Both indices from China and Japan are in the green and could accordingly provide further impulses for European stock markets. The positive sentiment in Japan is partly due to the fact that Japan's GDP has grown more strongly than expected, while in China, markets are reacting positively to the upcoming Xi Symposium.
Will this deliver further positive impulses for investors in Europe? In recent trading weeks, investors in European markets have been spoiled in terms of performance. European stock markets have been on a record-breaking run. How long can this bullish phase continue?
UK Stock Markets with Strong Weekly Performance
The British FTSE 100, for example, gained over 6.5 percent in the past trading week, reaching a two-month high. Although it came under some pressure toward the end of the week, the index managed to hold on to its gains. This week, economic data such as inflation figures and retail sales in the UK, set to be reported on Wednesday and Friday, respectively, should be closely monitored. On Tuesday, Governor Bailey’s speech could already bring some market movement.
Euro Stoxx Continues Its Upward Trend – Elections in Focus
The Euro Stoxx 50 also performed well in the past trading week. While it gained only 2.7 percent on a weekly basis, the index has been in exceptionally strong form for weeks. Growth in Q4 was also stronger than expected, and the labor market has developed positively. Investors should pay attention to the manufacturing index on Friday, and the upcoming elections in Germany this weekend could potentially provide further support for European markets.
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