UPDATE 2-European stocks end at record high on strong German data, earnings

Reuters

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    * STOXX 600 reclaims April high
    * Commodity stocks rally, best weekly performers
    * Adidas surges on forecast lift 

 (Updates to market close)
    By Sruthi Shankar and Ambar Warrick
    May 7 (Reuters) - European stocks closed at a record high on
Friday, marking strong weekly gains as positive economic data
and upbeat earnings underpinned hopes of a swift economic
recovery from the COVID-19 pandemic.
    The pan-European STOXX 600 index  .STOXX  rose 0.9%% to a
record high of 444.93 points. It added 1.7% this week- its best
performance since mid-March.
    Global stocks rallied to record highs as investors scaled
back expectations of policy tapering by the U.S. Federal
Reserve, after data showed the U.S. labour market had a long
road to recovery from the pandemic.  MKTS/GLOB 
    European technology stocks  .SX8P  were the best performers
for the day, rising 2.2% as they recovered from a rout seen
earlier in the week. The sector ended the week largely
unchanged. 
    Basic resource stocks  .SXPP  were the best weekly
performers, adding 7.2% for the week and ending at over a
decade-high as optimism over recovering global demand pushed up
base metal and iron ore prices. 
    The German DAX  .GDAXI  rose 1.3%, inching closer to its
lifetime high, while France's CAC 40  .FCHI  ended at its
highest level since November 2000 and UK's FTSE 100  .FTSE 
breached the 7,100 mark for the first time since February 2020. 
    Data showed German companies increased their exports for the
eleventh month in a row in March, with growth coming in at 1.2%,
twice the rate economists had forecast.  urn:newsml:reuters.com:*:nL8N2MU1QN
    A swathe of positive earnings and data has helped European
stocks rally to record highs this year, amid growing optimism
over COVID-19 vaccine programs spurring a return to normalcy. 
    "It's going to be an exceptionally strong couple of quarters
going forward, and that makes it very unlikely that the market
will suffer in a big way over the next six months," said Andrea
Cicione, head of strategy at TS Lombard. 
    The moment growth starts to slow down, probably at the same
time the Fed starts taking some liquidity away, markets will be
more vulnerable, Cicione said.
    On the earnings front, German sportswear company Adidas
 ADSGn.DE  surged 8.4% after it raised its 2021 sales outlook.
 urn:newsml:reuters.com:*:nL8N2MU142
    Jewellery maker Pandora  PNDORA.CO  gained 3.0% after
reporting 214% sales growth in April.  urn:newsml:reuters.com:*:nL1N2MU0AB
    UK's Meggitt  MGGT.L  jumped 8.3% after a media report of
takeover, while French mall owner Klepierre  LOIM.PA  edged
lower on trimming its 2021 cashflow forecast.  urn:newsml:reuters.com:*:nL8N2MU20J
 urn:newsml:reuters.com:*:nL1N2MU08D
     Spanish energy and infrastructure group Acciona  ANA.MC 
rose 2.3% after it said it expects to list a stake in its energy
business in the first half of this year.  urn:newsml:reuters.com:*:nL1N2MU0HT


 (Reporting by Sruthi Shankar in Bengaluru
Editing by Anil D'Silva and Frances Kerry)
 ((sruthi.shankar@thomsonreuters.com; within U.S. +1 646 223
8780; outside U.S. +91 80 6182 2787;))

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