European Shares Recover After Weak Start

(RTTNews) - European stocks recovered from a weak start to edge higher on Monday after reports suggested that EU leaders were making progress on a coronavirus rescue plan after three days of haggling.

The main division is between countries hit hardest by the virus and some EU members seeking to limit the size of the fund and stricter controls on its use.

Dutch Prime Minister Mark Rutte has admitted leaders were "close to failure" and talks could still "fall apart".

The pan European Stoxx 600 was up 0.3 percent at 373.99 after closing up 0.2 percent on Friday.

The German DAX gained 0.7 percent and France's CAC 40 index added 0.3 percent, while the U.K.'s FTSE 100 was down 0.3 percent amid escalating tensions between the U.K. and China over the government's recent decision to order the removal of Huawei's 5G equipment from Britain's mobile networks by 2027.

Shares of Philips Electronics NV jumped 4.6 percent after the Dutch consumer electronics giant reported higher orders and said it expects improved profitability in the second half.

French electric utility Engie rose about half a percent after investing in privately-held Energyworx, a cloud-based energy data management solutions provider.

Intesa Sanpaolo gained 0.8 percent. The Italian banking group said its board has resolved to increase the consideration of the offer for maximum 1,144,285,146 ordinary shares of UBI Banca.

Swiss wealth manager Julius Baer Gruppe fell over 2 percent after reporting a 6 percent drop in assets under management from end-2019 in the six months through June.

Renault advanced 1.2 percent despite the automaker reporting a 34.9 percent drop in worldwide sales in the first half of the year. The company said it had seen some signs of recovery in June.

Synairgen shares soared 350 percent in London after the company announced positive results from its clinical trial of SNG001, its wholly-owned inhaled formulation of interferon beta, in hospitalized Covid-19 patients.

Recruiting firm SThree gave up 1.3 percent after its first-half profit nearly halved from last year.

In economic releases, the euro area current account surplus declined in May largely reflecting the widening deficit on the secondary income, data from the European Central Bank showed.

The current account surplus fell to EUR 8 billion in May from EUR 14 billion in April. In the same period last year, the surplus was EUR 23 billion.

The trade surplus rose to EUR 17 billion from EUR 13 billion in April. Meanwhile, the surplus on services fell to EUR 4 billion from EUR 5 billion.

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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