EUROPE TRADED POSITIVE

European shares closed higher, with the pan-European STOXX 600 adding 0.7% and Frankfurt’s DAX 30 up by 0.6%, as investors assessed the reduction of pandemic-era monetary support from the ECB as being roughly in line with expectations. Policymakers said that incoming data reinforced their expectation that net asset purchases should end in the third quarter and that any interest rate adjustments will occur only after that and be gradual. On the corporate side, Hungary’s Wizz Air added 7.8% after stating it will expand its capacity to meet rising demand. Also, Atlantia rose 4.3% following a takeover bid by BlackRock and Bennetons for Italy’s largest highway operator. On the flip side, Ericsson plunged 5.9% on regulatory concerns. On the week, the DAX gained 0.5%, overshadowed by the STOXX 600’s 1.1% rise. Trading in the European stock markets returns on Tuesday.

The FTSE 100 closed 0.4% higher at 7,616, rebounding from losses earlier in the session, as market sentiment improved following a dovish ECB statement. Policymakers in the ECB said that incoming data reinforced their expectation that net asset purchases should end in the third quarter and that any interest rate adjustments will occur only after that and be gradual. On the other hand, retailer Dunelm climbed 0.5% after it reported a jump in sales in Q3. Among individual shares, London-listed Hungarian low-cost airliner Wizz Air added 7.8% after lifting its Q4 guidance and stating it will expand its capacity to meet rising summer demand. On the week, the index gained 0.7%, the sixth straight weekly gain. The FTSE 100 will be closed on both Friday and Monday in observance of the Good Friday and Easter Monday holidays.

The CAC 40 finished 0.7% up at 6,589, extending last session’s rebound, after the ECB left rates unchanged and pledged to end bond-buying in the coming months, as expected. Traders also weighed the risks from inflationary pressures exacerbated by geopolitical tensions and the start of the earnings season. Gains were led mainly by luxury stocks, with Essilor Luxottica surging the most (+3.3%) after Morgan Stanley raised its price target, followed by Hermes International (+2.7%) after the luxury giant reported a 27% jump in its revenues in the first quarter. Steel company ArcelorMittal also advanced significantly (2.9%) following news that China's government is considering measures to support the economy. The CAC 40 ended the week 0.6% higher, as the Paris exchange will be closed Friday and Monday due to Easter festivities.

The FTSE MIB index closed 0.6% higher at 24,862, extending last session’s rebound amid a strong performance by the industrial sector as investors digested the ECB April meeting. The central bank kept rates unchanged, as widely expected, and said it plans to end asset purchases in Q3 before starting the rate tightening cycle. Atlantia led the gains to jump by 4.3%, following news that Blackstone and Benetton family-run Edizione launched a takeover bid for the infrastructure giant for €23 per share with a dividend of €0.74, adding to a €58 billion buyout. The Edizione group already holds 33% of Atlantia, its biggest shareholder. On the other hand, utilities underperformed as Prime Minister Draghi continues to look for other sources of natural gas to decrease Russian imports, with visits planned to Congo Republic and Angola this month. The index ended the week 0.2% higher, as the Milan exchange will be closed Friday and Monday due to Easter festivities.

The Ibex 35 closed 0.9% up at 8,699, its highest since February 16th, extending gains for a second straight session, after the ECB left rates unchanged as expected and renewed its pledge to gradually end bond-buying in the coming months. Meanwhile, ECB Christine Lagarde insisted there was no clear schedule for when rates would start to rise, adding that it could be weeks or months after the end of stimulus. Traders also weighed the start of the earnings season against ongoing geopolitical risks. Among single stocks, travel-related companies, Grifols, ArcelorMittal and Acerinox led the gains, while Siemens Gamesa was the top loser. On the week, the IBEX 35 added 1.1%, the third straight week of gains. The Madrid exchange will be closed on both Friday and Monday in observance of the Good Friday and Easter Monday holidays.