European shares bounced from their worst weekly decline since October. The improvement was a result of a huge surge in the shares of miners after a continuous retail craze directed its focus to silver.
The pan-European STOXX 600 index increased by 1.1%, while the stakes of miners such as Fresnillo, Polymetal International, and Boliden AB leaped by 5%-20%.
Silver is the latest priority for retail investors
Due to the online retail craze, silver has been pushed to the limelight by retail investors. The investors are using it to short the values of assets big wealth funds bet against. Silver prices have reportedly risen to an eight-year-high.
The recent stock surge made the European basic resources index jump by 2.4%, the highest it has ever been since January.
David Madden, a market analyst at CMC Markets said the commodity exchange is witnessing a remarkable growth in the value of silver, which has indirectly led to a growth in the mining sector.
He also added that the surge in the price of silver is not a cause of concern to financial markets and regulators as the price of silver is harder to influence, unlike stocks.
Major European regional indexes experience growth
Major European regional indexes are also experiencing an in reading in value, with Britain’s FTSE 100 stock price growing by 0.9% and German shares growing by 1.4%.
There are currently concerns about the possible damage the new strain of coronavirus can wreak on the European economy.
Data showed German retail sales fell off in December due to coronavirus restrictions. The STOXX 600 had previously experienced a decrease of more than 3% in the past weeks when it was discovered that there would be a delay in the coronavirus vaccine rollout.
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