FTSE lead European stocks rally as U.K. abandons quarantine plan
European stocks ended the week on a stronger note, with FTSE shares leading the rally, after European Central Bank (ECB) President Christine Lagarde said that the worst of the pandemic was over. However, Lagarde cautioned that there could still be a possibility of a “severe second wave”.
Europe may be set to outperform U.S. markets because of its success of bringing the COVID-19 virus under control.
Infection rates in Europe have remained low for June even after lockdown measures loosened.
The FTSE 100 outperformed other major indices, gaining 1.4% on Friday.
Meanwhile, the STOXX 600 rose 0.9% while the German DAX gained 0.6%.
Tourism-sensitive stocks in the U.K. were some of the biggest gainers, with British Airways soaring as high as 3.5%. EasyJet, just after its capital raising exercise, gained 3.3%.
However, not all European markets were able recover due to the rising number of COVID-19 cases in the U.S.
Lagarde ominously warned that economic rebound could be “uneven”, “incomplete”, and “transformational”, suggesting that some companies may not recover at all while others come out stronger.