"Profit taking" deprives European stocks of a record high
- Fri 30 Apr 2021 - 2:31 AM
European shares closed lower in Thursday's session, despite banks rising to 14-month highs thanks to strong quarterly earnings.
European stocks fell, after rising bond yields in the euro zone, prompting some investors to sell for profit after reaching record levels.
The European STOXX 600 index The European "STOXX 600" index fell 0.3% to 438.77 points, away from its record high of 443.61 points recorded last week.
According to Reuters, experts believe that the decline in shares in Thursday's trading is due to profit taking after the "amazing results" achieved by most of the shares. The "Stokes 600" climbed to record highs, anticipating a strong results season, as well as optimism about the "Covid-19" vaccination program.
Banks are the best performers Banking stocks were the best performers in Thursday's session, after Standard Chartered made its contribution to a series of strong results reports this week, which included names like HSBC and Santander.
The sector was supported by a jump in Eurozone bond yields, after better-than-expected data for US growth and German inflation, which enhances the chances of reducing the stimulus provided by central banks. The US Treasury yields also rose to their peak in two weeks.
But the rise in yields put pressure on other European sectors, especially cycle-related stocks, which rose this year. Travel and leisure stocks tumbled Shares of travel and entertainment companies, the best performer in Europe this year, fell 0.7%, to fall from record highs.
Auto stocks led Thursday's session losses, with the sector index dropping 2.6% after US Ford said that the global semiconductor shortage could cut second-quarter production by half.