European stocks rose on Monday, as optimism surrounding second-quarter earnings offset a disturbing rise in coronavirus cases, including in the key U.S. state of Florida.
After edging up 0.4% last week, the Stoxx Europe 600
The German DAX
, French CAC 40
and U.K. FTSE 100
Futures on the Dow Jones Industrial Average
rose 172 points.
Earnings season for the second quarter gets underway this week. In the U.S., major banks including Citigroup
, JPMorgan Chase
and Wells Fargo
are due to report earnings. Microchip equipment maker ASML
, miner Rio Tinto
and telecom equipment firm Ericsson
are among the European-listed companies due to report second-quarter results. Estimates currently are for U.S. earnings to shrink 44% year-on-year, and European earnings to slump by 64%.
Security firm G4S
on Monday said its first-half earnings will be “significantly” above market expectations and that it will move up the reporting of those results.
Markets also are looking ahead of the gathering of European leaders to discuss the European Union recovery fund proposal.
The coronavirus news over the weekend wasn’t great, with Florida on Sunday reporting the highest number of cases for any state during the pandemic and accounting for about a quarter of the U.S. total. U.S. President Donald Trump and U.K. Prime Minister Boris Johnson each wore masks in public for the first time, with speculation England may start requiring mask wearing in shops.
shares slumped 8% after the French videogames maker announced a staff shakeup that includes the departure of its chief creative officer. Ubisoft CEO Yves Guillemot said the company “has fallen short in its obligation to guarantee a safe and inclusive workplace environment for its employees.”
surged 35% after Alfa Laval
offered 1.73 billion euros in cash, or 11.50 euros per share, for the valve maker in an agreed deal.