European Shares Mixed As EU Summit Begins

(RTTNews) - European stocks were mixed in cautious trade on Friday, with hopes of more stimulus and a Covid-19 vaccine helping underpin sentiment as EU leaders prepare to hammer out details of a 750-billion-euro recovery fund. They also need to agree on a seven-year budget worth another €1.07 trillion.

German Chancellor Angela Merkel said earlier today that the differences are very very big and she cannot say if there will be a solution this time.

French President Emmanuel Macron said it was a "moment of truth" for Europe and the next hours would be decisive.

Investors were also looking to quarterly earnings updates to gauge the pace of the recovery from the coronavirus pandemic.

The pan-European Stoxx Europe 600 index was virtually unchanged at 371.95 after declining half a percent in the previous session.

The German DAX edged up 0.2 percent and the U.K.'s FTSE 100 gained 0.3 percent, while France's CAC 40 index was down 0.4 percent.

Shares of Ericsson soared 10 percent in Sweden. The telecom equipment maker backed its full-year guidance after reporting higher profit and sales in its second quarter.

Nordea Bank Abp rose over 2 percent. After posting a lower-than-expected second-quarter net profit, the financial services group said it remains committed to meeting both its three key priorities and financial targets for 2022.

Telecom company Telia Co. advanced 1.4 percent after its second-quarter core profit topped forecasts.

Volvo Group gained 1 percent despite reporting second-quarter net loss of 282 million Swedish kronor.

Swedish home appliances giant Electrolux AB slumped 5.6 percent. The company posted second-quarter loss was 141 million Swedish kronor, compared to last year's profit of 1.01 billion kronor.

Intesa Sanpaolo lost 1 percent. The banking group said that the Italian Competition Authority authorized the acquisition of control of UBI Banca subject to the execution of structural sales.

SAAB AB shares climbed 4.7 percent after the aerospace and defense company reported a 20 percent jump in second-quarter net profit.

German automaker Daimler jumped 4.5 percent. The company said auto markets recovered at the tail end of the second quarter.

British engineering group Renishaw surged 6 percent after lifting its annual revenue forecast.

HomeServe shares rose over 3 percent. The home emergency repairs and improvements business said it continues to expect to deliver a solid performance in fiscal 2021.

Travel-related stocks were losing ground. easyJet declined 2.7 percent, Carnival tumbled 4.5 percent and International Airlines Group dropped 2.3 percent.

In economic releases, Eurozone inflation increased as initially estimated in June as many coronavirus containment measures have been gradually lifted, final data from Eurostat showed.

Inflation rose to 0.3 percent from a near-four year low of 0.1 percent logged in May. The rate came in line with the preliminary estimate.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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