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Home / Business / European stocks rise when investors juggle technological optimism and economic gloom

European stocks rise when investors juggle technological optimism and economic gloom



European stocks rose on the last trading day of the month, rising better than expected and after the profit from the explosion for major US technology companies. This greeting has helped investors reject, so far, signs of growing global economic problems due to the pandemic.

Index Stoxx Europe 600 SXXP,
+ 0.64%
rose 0.5% to 361.06 after posting the worst one-day losses in four weeks, down 2.2%. The index looks at 0.2% in July. Elsewhere, the German DAX DAX,
+ 0.71%
rose by 0.6%, the French index CAC 40 PX1,
+ 0.47%
scored 0.6%, and the FTSE 100 UKX index,
+ 0.22%
0.3% added.

Recent data from China has revealed encouraging factory data. This is in the face of alarming US data, which shows consistently high layoffs and a record drop in gross domestic product by 32.9% in the second quarter. Recent outbreaks in the southern states and elsewhere have forced businesses to close again in some parts of the United States

“What may worry investors more is the realization that negative headlines about a possible second wave will only make it harder to achieve any prospect of a V-shape recovery, especially since working in the US. It looks like the market jump has stopped,” he said. Michael Hewson, chief market analyst at CMC Markets, in a note to clients.

Meanwhile, the outage pushed France’s gross domestic product to a record 13.8% drop in the second quarter, while Spain’s GDP fell 18.5%.

Fears of a second wave of the virus have been rising in Britain since the government imposed new restrictions on closures in the north in late Thursday. The outbreak of coronavirus cases due to people who do not follow the rules of social distance was to blame for the new restrictions, said Health Minister Matt Hancock. Spain and Belgium are also battling outbreaks.

Technology stocks in Europe rose on Friday after iPhone maker Apple AAPL,
+ 1.21%
and AMZN’s Amazon.com e-commerce group,
+ 0.60%
posted earnings on Thursday afternoon, which undermined analysts’ expectations. In addition to reporting more than $ 11 billion in profits, Apple also announced a four-on-one gap. Social media giant Facebook FB,
+ 0.51%
and Google GOOGL parent alphabet
+ 0.97%
placed solid, if less jaws fall out, the results.

Nasdaq-100 futures NQ00,
+ 1.01%
rose 91.75 points, or 0.9%, to 10,886, while the Dow Jones Industrial Average YM00,
+ 0.13%
and S&P 500 ES00 futures,
+ 0.26%
rose by about 0.2% each.

Shares of semiconductor companies ASM International NV ASM,
+ 5.17%
and DLG dialog semiconductor PLG,
+ 3.59%
scored over 3% and 2% each.

Nokia NOK Corporation
+ 2.53%
NOKIA,
+ 12.20%
Shares brought earnings to Stoxx Europe 600, an increase of 11% after Finnish telecommunications and technology groups made year-round recommendations to increase profitability and cash flow. Nokia said that in the second quarter, sales received about 300 million euros due to the pandemic.

Elsewhere, BNP Paribas SA BNP,
+ 3.22%
was the best profit, and shares rose 4% after the French bank said that high customer activity increased the efficiency of operations in the markets, relieving pain of 1.45 billion euros ($ 1.72 billion) in credit losses.

PLAT BATS British American Tobacco,
+ 0.84%
reported profit growth in the first half, despite falling volumes. Kentucky’s bioprocessor manufacturing unit, which makes cigarettes, has applied and is awaiting approval from the U.S. Food and Drug Administration to begin litigation for its Covid-19 vaccine, Kingsley Wheaton, chief marketing officer, told MarketWatch.

On the other hand, the shares of the International Consolidated Airline Group IAG,
-7.45%
after the owner of British Airways and other airlines decreased by 5%, fell to 4.21 billion euros and announced plans to raise 2.75 billion euros by raising capital to increase the balance sheet of the balancing company. The IAG also said it was discussing a potential restructuring of Air Europa’s acquisition of Globalia to take into account the effects of the pandemic.

Shares of Air France-KLM SA AF,
-1.79%
fell to 2.2%. The airline has announced that it will cut 1,500 additional jobs.


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