European stocks closed the week higher on Friday as optimism about the earnings season and the European Central Bank’s (ECB) pledge of continued monetary support outweighed risks of a resurgence in COVID-19 cases.
The pan-European STOXX 600 rose 1.09 percent and gained 1.49 percent for the week.
Automakers were the top gainers in morning trade.
Mercedes-Benz maker Daimler AG gained 3.1 percent after Kepler Cheuvreux upgraded its stock to “buy,” saying its growth is not properly reflected in the share price.
French auto parts maker Valeo SA jumped 8 percent after it posted higher first-half sales and profit, and said it expected the shortage of key technology chips to ease.
Peers Faurecia SE and Continental AG rose more than 4 percent each.
A bout of selling hit financial markets on Monday as investors grew nervous about the fast-spreading Delta variant of SARS-CoV-2 hampering a global economic recovery.
However, strong earnings reports and the ECB’s commitment keep interest rates at record lows for even longer helped push the benchmark STOXX 600 to less than 0.5 percent below its all-time highs.
“For now, markets seem unconcerned about either with Delta or inflation, keeping the buy-everything music playing,” Oanda Corp senior market analyst Jeffrey Halley wrote in a morning note.
Rafale jets maker Dassault Aviation SA climbed 5.5 percent on reporting higher sales and profits in the first half of the year, while UK mobile operator Vodafone Group PLC rose 2.3 percent after reporting a better-than-expected 3.3 percent rise in first-quarter service revenue.
Chip equipment maker ASML Holding NV hit a fresh record high as strong earnings forecast earlier this week prompted brokerages to hike their price target.
Eurozone business activity this month expanded at its fastest monthly pace in more than two decades, IHS Markit’s flash survey showed, but fears of another wave of infections hit business confidence.
German purchasing managers’ index (PMI) hit its highest level in nearly a quarter of a century, creating inflationary bottlenecks.
Danske Bank A/S slid 3.5 percent as it second-quarter return on equity declined to 6.5 percent, down from 7.5 percent in the first quarter and well below the level of its Nordic peers.
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