Europe: Upbeat earnings put stocks on track for weekly gains

[BENGALURU] European stocks rose on Friday and were on track to close the week higher, as optimism about the earnings season and the European Central Bank's pledge of continued monetary support outweighed risks of a resurgence in Covid-19 cases.

The pan-European Stoxx 600 index rose 0.4 per cent by 7.19am GMT to trade at over one-week high.

Automakers were the top gainers in early trading.

French car parts maker Valeo jumped 8.1 per cent after it posted higher first-half sales and profit, and said it expected the shortage of key technology chips to ease.

Peers Faurecia and Continental rose 5.6 per cent and 3 per cent respectively.

Rafale jets maker Dassault Aviation climbed 7.1 per cent on reporting higher sales and profits in the first half of the year, while UK mobile operator Vodafone rose 2.6 per cent after reporting a better-than-expected 3.3 per cent rise in first-quarter service revenue.

Early readings of IHS Markit's July manufacturing and services sector activity for the euro zone and United Kingdom are due later in the day, with numbers expected to slip from compared with strong June data.

REUTERS