European stocks rise as investors juggle technological optimism and economic sadness

European stocks rose on the last trading day of the month, fueled by better-than-expected results and after big gains from top US tech companies. That joy helped investors sideline, for now, the signs of increasing global economic problems due to the pandemic.

The Stoxx Europe 600 SXXP Index,
+ 0.57%
It increased 0.5% to 361.06 after recording the worst one-day losses in four weeks, a 2.2% drop. The index looks for a 0.2% drop in July. Elsewhere, the German DAX DAX,
+ 0.27%
increased 0.6%, the French index CAC 40 PX1,
it gained 0.6% and the FTSE 100 UKX index,
added 0.3%.

New data from China revealed encouraging factory data. That’s just after troubled U.S. data showing persistently high worker layoffs and a record 32.9% drop in gross domestic product in the second quarter. New outbreaks in the southern states and elsewhere have forced companies to shut down again in some parts of the U.S.

“What is probably most concerning to investors seems to be the finding that negative headlines regarding a possible second wave will only make it much more difficult to achieve any kind of prospect of a V-shaped recovery, particularly since the US workers The rebound in the market appears to have stopped, ”Michael Hewson, chief market analyst at CMC Markets, said in a note to clients.

Meanwhile, the consequences of the blockade led French gross domestic product to a record fall of 13.8% in the second quarter and Spanish GDP fell 18.5%.

Fears of a second wave of the virus rose in the UK after the government imposed new blockade restrictions in northern parts of the country on Thursday night. The increase in coronavirus cases because people who did not adhere to social distancing rules were to blame for the new restrictions, health secretary Matt Hancock said. Spain and Belgium are also fighting outbreaks.

Europe’s tech stocks rose on Friday, after iPhone maker Apple AAPL,
+ 1.21%
and e-commerce group AMZN,
+ 0.60%
Earnings released Thursday afternoon flew analyst expectations. In addition to reporting more than $ 11 billion in earnings, Apple also announced a four-to-one stock split. The social media giant Facebook FB,
+ 0.51%
and Google Googl’s parent alphabet,
+ 0.97%
published solid, although less astonishing results.

Nasdaq-100 NQ00 futures,
+ 0.84%
it rose 91.75 points, or 0.9%, to 10,886, while Dow Jones Industrial Average YM00,
+ 0.05%
and S&P 500 ES00 futures,
+ 0.13%
increased about 0.2% each.

Shares of semiconductor companies ASM International NV ASM,
+ 3.88%
and Dialog Semiconductor PLC DLG,
+ 3.59%
He earned more than 3% and 2% each.

Nokia Oyj NOK,
+ 2.53%
+ 12.44%
The shares led the winners in the Stoxx Europe 600, up 11% after the Finnish telecommunications and technology group obtained an annual guide to higher profitability and cash generation. Nokia said sales had an impact of 300 million euros in the second quarter due to the pandemic.

On the other hand, BNP Paribas SA BNP,
+ 2.16%
It was a top winner, with a 4% share increase after the French bank said strong customer activity boosted the performance of its market operations, easing the pain of a provision of € 1.45. billion ($ 1.72 billion) for credit losses.

British American Tobacco PLC BATS,
+ 0.03%
reported an increase in earnings in the first half despite a drop in volume. The cigarette maker’s Kentucky BioProcessing division has applied for and is awaiting approval from the United States Food and Drug Administration to begin a trial of its Covid-19 vaccine, Kingsley Wheaton, the company’s chief marketing officer, told MarketWatch. In an interview.

On the downside, the shares of International Consolidated Airlines Group IAG,
slipped more than 5% after the owner of British Airways and other airlines lost 4.21 billion euros and announced plans to raise 2.75 billion euros in a capital increase to boost the company’s bottom line in difficulties. IAG also said it was discussing a possible restructuring of the Air Europa acquisition with Globalia to take into account the effect of the pandemic.

Shares of Air France-KLM SA AF,
fell 2.2%. The airline announced it would cut 1,500 additional jobs.