European Shares Advance as Investors Weigh Economic Recovery

Macarena Munoz
·1 min read

(Bloomberg) -- European equities edged higher Friday as investors weighed the prospects for economic recovery against concerns about the fast-spreading delta virus strain.

The Stoxx 600 Europe Index was up 0.6% as of 9:05 a.m. in London, with almost all sectors in the green, led higher by travel and leisure stocks. Ambu slumped as much as 16% after lowering its full-year financial forecast.

Europe’s benchmark has kicked off the second half of the year in a positive tone after a stellar first six months, as investors bet on an economic rebound and await an earnings season that’s expected to be another strong one. The Stoxx 600 is less than 0.5% away from a record closing level reached last month.

“With the stock market hovering near fresh records, things are calmer and results could be the next catalyst as we are already seeing very positive revisions,” said Diego Fernandez, chief investment officer at A&G Banca Privada in Madrid.

Later in the day, focus will turn to the U.S. jobs report, which Fernandez expects to be positive. European Central Bank President Christine Lagarde is also set to speak Friday.

European stock funds had their first outflows in 12 weeks in the week through June 30, with $62 million exiting, according to Bank of America Corp. and EPFR Global data.

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