The European stocks have jumped ahead to the highest level since June, 2008 as the Bank of England has increased the growth forecast for United Kingdom, the third biggest economy in European continent. The benchmark stock gauge Stoxx Europe 500 Index went ahead by 0.8% and it is currently at 308.06. So far in 2013, the equity benchmark has gone ahead by 10%, marking its best start in the last 15 years. Central banks from all over the world, incidentally, have maintained the stimulus measurements.
According to the Departmental Head of European Equities at the Royal London Asset Management, Andrea Williams, the quantitative easing which is happening all over the world is driving the market. Williams added that in general, the valuations still look quite reasonable and apart from that, the corporate results seasons seem to be doing fine as well.
Mervyn King, the Governor of the Bank of England, stated that the economic recovery in UK is now clearly visible. In the quarterly inflation report of the central bank, officials have predicted that the growth will be increasing to 0.5% in the 2nd quarter from 0.3% from that of the 1st quarter of 2013. Incidentally, this report is the last of King before he retires in this July.
Incidentally, a separate report released from Eurostat showed that the combined economy of the Euro region has shrank more than what was forecasted by the economists. Therefore, the recession in this currency bloc has now extended to the 6th straight quarter. On the other hand, in the 1st quarter, the Gross Domestic Product has experienced a fall of 0.2%, as mentioned by the European Union’s Statistics Office. In the last 3 months of 2012, the Gross Domestic Product of the Euro region experienced a decline of 0.6%.
Among the 18 Western European markets, 16 saw their National benchmark indexes going up. The FTSE 100 Index of UK went ahead by 0.1%, whereas, the DAX Index of Germany rose 0.3%. The CAC40 Index of France experienced a surge of 0.4% as well.
The largest tour operator in Europe, TUI went ahead by 4% as each share of the same is now priced at 9.41 Euros. TUI is going to resume the dividend payment, thereby enhancing the share price. Commerzbank, on the other hand, went ahead by 12% and each share of it now at 7.79 Euros.