By Steve Goldstein, MarketWatch
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 /zigman2/quotes/210599654/delayed XX:SXXP -1.58% gained 0.6%.
The German DAX /zigman2/quotes/210597999/delayed DX:DAX -1.78% , French CAC 40 /zigman2/quotes/210597958/delayed FR:PX1 -1.46% and U.K. FTSE 100 /zigman2/quotes/210598409/delayed UK:UKX -1.90% also advanced.
Futures on the Dow Jones Industrial Average /zigman2/quotes/210407078/delayed YM00 -0.25% rose 125 points.
Earnings season for the second quarter gets under way this week. In the U.S., major banks including Citigroup /zigman2/quotes/207741460/composite C -1.82% , JPMorgan Chase /zigman2/quotes/205971034/composite JPM -2.53% and Wells Fargo /zigman2/quotes/203790192/composite WFC -2.43% are due to report earnings. Microchip equipment maker ASML /zigman2/quotes/206208657/delayed NL:ASML -4.39% , miner Rio Tinto /zigman2/quotes/208934945/delayed UK:RIO -1.24% and telecom equipment firm Ericsson /zigman2/quotes/207544813/delayed SE:ERIC.B -1.40% are among the European-listed companies due to report second-quarter results. Estimates currently are for U.S. earnings to shrink 44% year-over-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.
“Even though the pandemic is getting worse, stocks in Asia drove higher and the feel-good factor spilled over to this part of the world,” said David Madden, market analyst at CMC Markets U.K.
Ubisoft Entertainment /zigman2/quotes/200990331/delayed FR:UBI -0.17% shares slumped 8% after the French videogame maker announced a staff shake-up that includes the departure of its chief creative officer. Ubisoft Chief Executive Yves Guillemot said the company “has fallen short in its obligation to guarantee a safe and inclusive workplace environment for its employees.”
Neles /zigman2/quotes/204331732/delayed FI:NELES +3.61% surged 36% after engineering giant Alfa Laval /zigman2/quotes/205826525/delayed SE:ALFA -1.58% offered €1.73 billion in cash, or €11.50 per share, for the valve maker in an agreed deal.