European markets close higher after faster recovery projection

By Ovunc Kutlu

ANKARA (AA) – European markets closed higher on Thursday for the second consecutive trading day, spurred by a high economic growth forecast for the EU that signals a faster recovery from the coronavirus pandemic.

The STOXX Europe 600, which includes around 90% of the market capitalization of the European market in 17 countries, rose 1.53 points, or 0.32%, to close at 485.29 after hitting an all-time high of 485.57 points during the session.

London’s FTSE 100 was the best performer of the day, rising 44 points, or 0.6%, to a record closing mark of 7,384.18. The index reached an all-time high of 7,394.41 points during trading hours.

The record levels of the FTSE 100 came despite UK economic growth slowing to 1.3% in the third quarter of 2021, down from 5.5% in the April-June period.

Germany’s DAX 30 climbed 15 points, or 0.10%, to close at 16,083, after a record high of 16,114.55 during the session.

France’s CAC 40 gained 14 points, or 0.2%, to close at 7,059, while Italy’s FTSE MIB 30 was up 72 points, or 0.26%, to end the day at 27,633.

Spain’s IBEX 35 was the worst performer of the day, falling 49 points, or 0.54%, to 9,092.

The EU economy is expected to grow 5% in 2021 and 4.3% in 2022, the European Commission announced earlier in the day.

Ireland, Estonia and Croatia are projected to have the highest growth rates this year, with 14%, 9% and 8.1%, respectively.

“The European economy is moving from recovery to expansion but is now facing some headwinds,” said Paolo Gentiloni, EU commissioner for economy. ​​​​​​​