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European stocks rise on the eve of the earnings season as traders look beyond the top of the virus



European stocks rose on Monday as optimism about second-quarter earnings offset an unsettling surge in coronavirus cases, including in the key US state of Florida.

After the Stoxx Europe 600 SXXP rose 0.4% last week,
+ 0.62%
won 0.6%.

The German DAX DAX,
+ 0.98%,
French CAC 40 PX1,
+ 0.83%
and UK FTSE 100 UKX,
+ 1.00%
also advanced.

Futures on the Dow Jones Industrial Average YM00,
+ 0.51%
increased by 125 points.

The second quarter earnings season starts this week. In the US, big banks like Citigroup C,
+ 6.47%,
JPMorgan Chase JPM,
+ 5.46%
and Wells Fargo WFC,
+ 5.94%
are to be reported result. Manufacturer of microchip devices ASML ASML,
+ 0.74%,
Miner Rio Tinto RIO,
+ 2.68%
and telecommunications equipment company Ericsson ERIC.B,
+ 0.48%
are among the listed companies in Europe based on the results of the second quarter. It is currently estimated that U.S. profits will shrink 44% year over year and European profits will decrease 64%.

Security company G4S GFS,
+ 8.83%
On Monday announced that the results for the first half of the year would be “significantly” above market expectations and that reporting on these results would improve.

Markets are also looking forward to the meeting of European leaders to discuss the EU restructuring fund proposal.

The corona virus news over the weekend was not great. Florida reported the highest number of cases for a state during the pandemic on Sunday, making up about a quarter of the US total. US President Donald Trump and British Prime Minister Boris Johnson each wore masks in public for the first time. Speculation suggests that England may require masks to be worn in shops.

“As the pandemic worsens, stocks in Asia have risen and the feel-good factor has affected this part of the world,” said David Madden, market analyst at CMC Markets UK

Ubisoft Entertainment UBI,
-9.03%
Shares slumped 8% after the French video game maker announced personnel restructuring that included the departure of its chief creative officer. Yves Guillemot, Ubisoft’s chief executive, said the company had “failed to meet its commitment to ensure a safe and inclusive work environment for its employees.”

Neles NELES,
+ 36.63%
rose 36% after the engineering giant Alfa Laval ALFA,
+ 4.11%
offered the valve manufacturer € 1.73 billion in cash or € 11.50 per share as part of an agreed deal.


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