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June 26, 2020, 4:33 a.m. EDT

European stocks rise, but gains tempered by U.S. coronavirus concerns

Lufthansa, H&M, Tesco and Wirecard on the move

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By Barbara Kollmeyer, MarketWatch


AFP via Getty Images
Youths take part in a football training session, as the Eiffel Tower is seen in the background, during a session of youth sports club "Entente Sportive Petits Anges Paris" on June 25, 2020, in Paris.

European stocks rose on Friday, but gains were tempered by a record rise in coronavirus cases in the U.S.. Gains for German business software group SAP SE boosted the index, while Swedish retailer Hennes & Mauritz AB tugged in the other direction after reporting weak sales.

The Stoxx Europe 600 index /zigman2/quotes/210599654/delayed XX:SXXP -0.66%  rose 0.4% to 361.13, after a gain of 0.7% on Thursday. The index is looking at a nearly 1% loss in the week so far. Elsewhere, the German DAX 30 /zigman2/quotes/210597999/delayed DX:DAX -0.70%  rose 0.2%, the French CAC 40 /zigman2/quotes/210597958/delayed FR:PX1 -1.22%  rose 0.5% and the FTSE 100 index /zigman2/quotes/210598409/delayed UK:UKX -0.71%  gained 0.78%.

Europe was pushing higher as U.S. stock futures fell, with those for the Dow Jones Industrial Average /zigman2/quotes/210407078/delayed YM00 +0.01%  down over 200 points. Wall Street stocks finished higher in a late rally on Thursday.

Banks could weigh on that index, with JP Morgan Chase & Co. /zigman2/quotes/205971034/composite JPM -0.21%  down in premarket trading. After the close of U.S. markets on Thursday, the Federal Reserve’s latest stress tests found that most will remain well-capitalized even under the harshest Covid-19 scenarios. But buyback have been suspended through the third quarter and dividend payments will be capped to preserve capital.

U.S. coronavirus cases neared an all-time high on Thursday, and states such as Texas were forced to dial back reopenings, with that state and other setting single-day case records this week.

However, the Texas governor’s “recent action of halting the further reopen efforts” is viewed as a “step in the right direction to stamp out the current spike in Covid-19,” said Naeem Aslam, chief market analyst at AvaTrade, in a note to clients.

Elsewhere, European Central Bank President Christine Lagarde said the worst of the coronavirus crisis may be over for the world, but the road ahead would not be easy. “That recovery is going to be incomplete and might be transformational,” she said, during the online Northern Light Summit on Friday, according to CNBC.

Shares of H&M SE /zigman2/quotes/208522175/delayed SE:HM.B -1.68%  fell 1.7% after the Swedish retailer said second-quarter sales fell 50% and it swung to a loss of SEK3.02 per share, as the pandemic forced it to close 80% of stores during the worst of the lockdown. But the retailer said online sales in local currencies rose 32%, and that total sales “have gradually begun to recover” at stores that had reopened.

Shares of U.K. grocer Tesco PLC /zigman2/quotes/203761082/delayed UK:TSCO +2.04%  rose 1% after reporting a nearly 8% rise in like-for-like sales growth in the first quarter.

Shares of heavily-weighted SAP SE /zigman2/quotes/207905606/composite SAP -0.17%   /zigman2/quotes/203458330/delayed DE:SAP -0.25%  rose 1.6%.

Wirecard AG /zigman2/quotes/201427212/delayed DE:WDI -5.60%  slumped another 41%, a day after the payments system provider said it was filing for insolvency amid an accounting scandal. Visa Inc. and Mastercard Inc. may revoke the German company’s ability to process payments, Bloomberg reported Friday , citing sources. Those companies commented to Bloomberg that they are closely monitoring developments with Wirecard.

/zigman2/quotes/210599654/delayed
XX : STOXX
368.78
-2.45 -0.66%
Volume: 0.00
Sept. 18, 2020 11:03p
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/zigman2/quotes/210597999/delayed
DAX
DX : Xetra Indices
13,116.25
-91.87 -0.70%
Volume: 185,861
Sept. 18, 2020 6:30p
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/zigman2/quotes/210597958/delayed
FR : France: Euronext Paris
4,978.18
-61.32 -1.22%
Volume: 279,158
Sept. 18, 2020 6:05p
loading...
/zigman2/quotes/210598409/delayed
UK : FTSE UK
6,007.05
-42.87 -0.71%
Volume: 1.54M
Sept. 18, 2020 4:56p
loading...
/zigman2/quotes/210407078/delayed
US : U.S.: CBOT
$ 27,605.00
+3.00 +0.01%
Volume: 214,161
Sept. 18, 2020 3:59p
loading...
/zigman2/quotes/205971034/composite
US : U.S.: NYSE
$ 98.35
-0.21 -0.21%
Volume: 20.12M
Sept. 18, 2020 4:00p
P/E Ratio
13.25
Dividend Yield
3.66%
Market Cap
$299.73 billion
Rev. per Employee
$497,647
loading...
/zigman2/quotes/208522175/delayed
SE : Sweden: Stockholm
kr 157.85
-2.70 -1.68%
Volume: 5.19M
Sept. 18, 2020 5:29p
P/E Ratio
52.17
Dividend Yield
0.00%
Market Cap
kr261.25 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/203761082/delayed
UK : U.K.: London
219.60 p
+4.40 +2.04%
Volume: 41.82M
Sept. 18, 2020 4:35p
P/E Ratio
22.14
Dividend Yield
4.17%
Market Cap
£21.51 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/207905606/composite
US : U.S.: NYSE
$ 160.15
-0.28 -0.17%
Volume: 713,217
Sept. 18, 2020 4:00p
P/E Ratio
37.77
Dividend Yield
0.78%
Market Cap
$189.57 billion
Rev. per Employee
$302,071
loading...
/zigman2/quotes/203458330/delayed
DE : Germany: Frankfurt
134.90
-0.34 -0.25%
Volume: 1,512
Sept. 18, 2020 8:58p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
N/A
Rev. per Employee
€256,047
loading...
/zigman2/quotes/201427212/delayed
DE : Germany: Frankfurt
0.81
-0.05 -5.60%
Volume: 1,981
Sept. 18, 2020 8:59p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
N/A
Rev. per Employee
€430,030
loading...

Barbara Kollmeyer is an editor for MarketWatch in Madrid. Follow her on Twitter @bkollmeyer.

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