European equities rise on the eve of the profit season


European stocks rose on Monday as optimism over second quarter results offset a disturbing increase in coronavirus cases, including in the main US state of Florida.

After a slight increase of 0.4% last week, the Stoxx Europe 600 SXXP,
+ 0.46%
gained 1%.

The German DAX DAX,
+ 0.85%
, French CAC 40 PX1,
+ 0.52%
and UK FTSE 100 UKX,
+ 0.85%
also advanced.

Futures on the Dow Jones Industrial Average YM00,
+ 0.37%
increased 172 points.

The second quarter profit season begins this week. In the United States, the major banks, including Citigroup C,
+ 6.47%
, JPMorgan Chase JPM,
+ 5.46%
and Wells Fargo WFC,
+ 5.94%
are due to report income. Manufacturer of electronic chip equipment ASML ASML,
+ 0.48%
, minor Rio Tinto RIO,
+ 2.12%
and telecom equipment manufacturer Ericsson ERIC.B,
+ 0.46%
are among the listed companies in Europe due to the publication of second quarter results. American profits are estimated to decline 44% year-on-year and European profits to fall 64%.

G4S GFS security cabinet,
+ 9.29%
Monday said its first half results will be “significantly” higher than market expectations and that it will increase the reporting of those results.

The markets are also anticipating the meeting of European leaders to discuss the European Union stimulus fund proposal.

The news about the coronaviruses over the weekend was not good, with Florida reporting the highest number of cases for any state on Sunday during the pandemic and accounting for about a quarter of the US total. President Donald Trump and Prime Minister Boris Johnson each wore masks in public for the first time, and speculation that England may begin to require the mask to be worn in stores.

Ubisoft Entertainment Where?
shares fell 8% after the French video game maker announced a staff reshuffle that included the departure of its creative director. Ubisoft CEO Yves Guillemot said the company “failed to fulfill its obligation to ensure a safe and inclusive work environment for its employees”.

In them NELES,
+ 36.17%
jumped 35% after Alfa Laval ALFA,
+ 4.31%
offered 1.73 billion euros in cash, or 11.50 euros per share, to the valve manufacturer as part of an agreement.


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