Swedish earnings, Daimler support European stocks ahead of EU summit

Credit: REUTERS/STAFF

European shares edged higher on Friday as focus turned to Brussels where European Union leaders are expected to hammer out details of a 750-billion-euro recovery fund, with positive earnings updates from Ericsson, Daimler and other firms also supporting gains.

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July 17 (Reuters) - European shares edged higher on Friday as focus turned to Brussels where European Union leaders are expected to hammer out details of a 750-billion-euro recovery fund, with positive earnings updates from Ericsson, Daimler and other firms also supporting gains.

The pan-European STOXX 600 index .STOXX rose 0.2% by 0714 GMT, with automakers .SXAP jumping 1.8% after Daimler AG DAIGn.DE said it expects to post a smaller-than-expected operating loss in the second quarter.

Sweden's main stock index .OMXSPI jumped 0.9%, with truck maker Volvo AB VOLVb.ST and telecom equipment maker Ericsson ERICb.ST reporting better-than-expected core profits, while Swedbank AB SWEDa.ST reported a smaller-than-expected fall in net profit.

Euro zone stocks .STOXXE were up 0.1% after rallying in the recent months on hopes that an EU-wide fund to support the pandemic-stuck economies could lift the bloc out of recession.

Analysts believe markets could tolerate a few days' or weeks' delay with opposition from the Netherlands and the threat of a Hungarian veto weighing on chances of a deal.

(Reporting by Sruthi Shankar in Bengaluru; Editing by Shounak Dasgupta)

((sruthi.shankar@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 6182 2787;))

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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