European Stocks Head for Weekly Gain, Boosted By Mining Shares
European stocks gained as higher commodity prices boosted mining shares and BHP Group delivered an upbeat assessment of demand in China.
The Stoxx Europe 600 Index was 0.3% higher and on track for a weekly advance of 0.2%. Energy and commodity stocks led gains, while auto and healthcare shares lagged.
BHP shares added 1.5%, helped by a rally in iron ore to the highest level since early April. Vestas Wind Systems A/S jumped 10%, leading gains in the Stoxx 600. The company announced a new order in the US, and JPMorgan analyst upgraded their view on the stock.
Burberry Group Plc gained 2.3% after sales fell less than expected. Saab AB climbed 9.9% as it reported a strong set of results for the second quarter and lifted its organic revenue forecast for the full year.
“Earnings growth in Europe seems to be accelerating, while in the US it is slowing,” said Joachim Klement, head of strategy, economics and ESG at Panmure Liberum.
With leading indicators improving for manufacturing and services, “we think that earnings growth will continue to accelerate throughout the second half,” he added.
Among other single stocks, GSK Plc’s shares sank 6% after one if its key new drugs, blood cancer treatment Blenrep, failed to secure the backing of a panel of US regulatory advisers, putting its approval in doubt.
Source : Bloomberg
