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Home / Business / European stocks are rising as investors play technological optimism and economic twilight

European stocks are rising as investors play technological optimism and economic twilight



European equities rose on the last trading day of the month, boosted by more-than-expected results and after gains by large U.S. tech companies. This joy helped investors put aside, for now, signs of rising global economic problems due to the pandemic.

The Stoxx Europe 600 SXXP Index,
+ 0.59%
rose 0.5% to 361.06 after recording the worst one-day losses in four weeks, 2.2%. The index is down 0.2% in July. Elsewhere, the German DAX DAX,
+ 0.66%
increased by 0.6%, the French index CAC 40 PX1,
+ 0.40%
obtained 0.6% and the FTSE 100 UKX index,
+ 0.19%
added 0.3%.

Current data from China revealed encouraging factory data. Problems shown when worrying in U.S. data show high-intensity layoffs and a record drop in gross domestic product of 32.9% in the second quarter. New outbreaks in southern states and elsewhere have forced companies to close again in parts of the United States

“What’s probably most troubling for investors seems to be the finding that negative headlines regarding a possible second wave will only make it much harder to get any kind of V-shaped prospect of recovery, especially because U.S. jobs It looks like the market rebound has stopped, ”Michael Hewson, chief market analyst at CMC Markets, said in a note to clients.

Meanwhile, the fall in the blockade pushed French gross domestic product to a record drop of 13.8% in the second quarter and Spanish GDP fell 18.5%.

Fears of a second wave of the virus rose in the UK after the government imposed new blockade restrictions on northern bands in the country late Thursday. Health Secretary Matt Hancock declared the surprise of coronavirus cases due to people not complying with social distancing rules. Spain and Belgium are also fighting outbreaks.

European technology stocks rose Friday after Apple AAPL, maker of iPhone,
+ 1.21%
and Amazon.com e-commerce group AMZN,
+ 0.60%
the earnings posted Thursday afternoon that sparked analysts ’expectations. In addition to reporting more than $ 11 billion in profits, Apple also announced a four-to-one stock split. Social-social giant Facebook FB,
+ 0.51%
and GoogleOG Parent alphabet GoogleOGL,
+ 0.97%
solid results were reported and with less jaw drop.

Nasdaq-100 futures NQ00,
+ 1.00%
rose 91.75 points, 0.9%, to 10,886, while the Dow Jones YM00 industry average,
+ 0.16%
and future S&P 500 ES00,
+ 0.26%
increased by about 0.2% each.

Shares of Semiconductor Companies ASM International NV ASM,
+ 4.85%
and Dialog Semiconductor PLC DLG,
+ 3.59%
earned above 3% and 2% each.

Nokia Corporation NOK,
+ 2.53%
NOKIA,
+ 11.58%
equities led gains to the Stoxx Europe 600, which rose 11% after year-round Finnish telecommunications and technology orientations on higher profitability and cash generation. Nokia said sales reached 300 million euros in the second quarter due to the pandemic.

Elsewhere, BNP Paribas SA BNP,
+ 3.02%
was the biggest winner, with shares up 4% after the French bank said heavy customer activity increased the performance of its market operations, and alleviated the pain of a credit loss endowment of 1.45 million euros (1.72 billion dollars).

BATC PLC British American,
+ 0.52%
recorded an increase in first-half profit despite a drop in volume. The Kentucky BioProcessing division of the cigarette maker has applied for and is awaiting approval from the U.S. Food and Drug Administration to begin a trial of its Covid-19 vaccine, Kingsley Wheaton , the company’s top marketing manager, told MarketWatch in an interview.

The shares of International Consolidated Airlines Group IAG,
-7.42%
fell more than 5% after the owner of British Airways and other airlines could be reduced to 4.21 billion euros and announced plans to raise 2.75 million euros in a capital increase to increase the balance sheet of the struggling company . IAG also said it was discussing a potential restructuring of Air Europe’s acquisition with Globalia to take into account the effect of the pandemic.

Shares of Air France-KLM SA AF,
-1.25%
fell 2.2%. The airline announced it would cut an additional 1,500 jobs.


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