European stock exchange touched a record high in five years. According to a report, there has been some good improvement in the level of consumers’ confidence – at least, more than what the economists forecasted.
It is also a rosy time for the European carmakers that are enjoying a record rise since 2007. Sale of vehicle shoot up in the last 19 months. It is, however, not sunny days for FLSmidth & Co. A/S as it is down by 9.7 percent. By the time the trading drew to a close, further addition of 0.2 percent was made by Stoxx Europe; the figure (308.72) is at its highest peak since June 2008. All these made a good impact on equity level that enjoyed a rise of 1.2 percent this week, experiencing gain for fourth week.
It is a good sign for the health of global economy that the US consumers are spending a lot. They constitute preponderant majority in the demography of global consumers. Their increasing spending habit is expected to be the lifeline for not only US economy – which is in far better-off position now – but also for the global economy as a whole.
What the Leading Indicators Say
According to a survey done by Bloomberg, economists predicted an increase of 0.2 percent in the index of US leading indicators but in reality, it surged by 0.4 percent more in April. Bloomberg also revealed that for the companies listed on the Stoxx 600, amount of shares changed hands between them was 17 more than the reported average compiled in the last 30 days.
Carmakers put up the best performance in the past four weeks. Car sale rose by 1.8 percent in April, according to a report from the horse’s mouth. For Renault SA and PSA Peugeot Citroen, it was no less than a big leap. They showed a hike by 3.6 percent to 61.29 percent and 10 percent to 7.14 euros respectively.
Other Side of the Coin
FLSmidth slumped to 302 kroner. In the first quarter, it made a net income of 37 million kroner which was less than an average estimate of 231 million krone as per Bloomberg survey. Intertek Group Pic suffered major decline in two months when it slid down by 1.9 percent to 3,385 pence.