European Shares Rise On Earnings Growth Hopes

European stocks rose on Monday as investors looked ahead to the upcoming earnings season for signs of an economic recovery from the coronavirus-induced downturn.

Investors also remain hopeful that the EU 27 will make progress in agreeing a 750 billion euro ($848.78 billion) Covid-19 recovery fund.

The European Central Bank meets on Thursday but analysts don’t see any changes to the bank’s ultra-easy monetary policy stance.

The pan European Stoxx 600 was up half a percent at 368.67 after rising 0.9 percent on Friday.

The German DAX climbed 0.9 percent, France’s CAC 40 index rose 0.6 percent and the U.K.’s FTSE 100 was up over 1 percent.

Finnish valves maker Neles soared 37 percent after striking a so-called combination agreement with Swedish industrial group Alfa Laval. Shares of the latter surged 4 percent.

Ubisoft Entertainment slumped 9.3 percent after the video games maker announced staff departures following allegations of misconduct and inappropriate behavior.

Nordic bank DNB jumped 4.5 percent and Nordic Semiconductor added nearly 10 percent after posting better-than-expected earnings.

Swiss banking giant Credit Suisse edged up slightly on reports that it is mulling job cuts.

Akzo Nobel N.V. gained over 4 percent after it provided a further update on recent business performance.

Novacyt climbed 2 percent after the Anglo-French biotechnology group reported booming sales of its Covid-19 test.

Diageo advanced 1.6 percent. The spirits group announced it has created the world’s first 100 percent plastic free paper-based spirits bottle, made entirely from sustainably sourced wood.

Miners BHP, Rio Tinto and Glencore rose about 2 percent as metal prices surged on optimism over China’s recovery.

G4S shares soared 9 percent. The security firm said it expects its first-half adjusted PBITA and underlying earnings to be “significantly” above market expectations.

Boohoo Group shares plunged 15 percent after Standard Life Aberdeen sold two thirds of its holding in the fast fashion retailer.

Centamin advanced 1.5 percent. The company reported that its gold production was 130,994 ounces from the Sukari Gold Mine for the second-quarter, an 11 percent increase from last year.

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