UPDATE 1-European stocks advance slightly as travel stocks rebound
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* UK travel shares increase before full reopening
* Luxury stocks fall after mixed results
* Ericsson slips as profits hit by China (adds comment, updates prices)
By Sruthi Shankar
July 16 (Reuters) – European stocks rose on Friday as travel stocks rebounded after posting large losses this week, while a series of bullish earnings reports overshadowed concerns about increasing cases Delta variant on the mainland.
The pan-European STOXX 600 index rose 0.1%. Still, the index was on track at the end of the week flat to decline slightly.
Travel and leisure stocks gained 1.1%, with shares of Britain’s Whitbread, Intercontinental Hotels and British-Airways owner IAG rising nearly 3%.
British FTSE 100 and mid-cap stocks rose 0.3% each before Britain lifted all pandemic-related restrictions on Monday despite rising COVID-19 cases.
Helping the travel and leisure industry, President Joe Biden said Thursday that the United States is considering when it could lift restrictions that prohibit most non-U.S. Citizens from traveling to the United States from much of the United States. ‘Europe.
Concerns about rising inflation and rising infections causing the economic recovery to slow down have weighed on investors’ minds this week, leading many investors to bond market safety and making it harder for equities record to capitalize on their earnings.
“Markets have moved broadly sideways this week, reflecting some cross currents,” said Silvia Dall’Angelo, senior economist, Federated Hermes International Affairs.
On the one hand, the good start to the second quarter results season in the United States and the conciliatory rhetoric from central banks continued to provide support. On the other hand, several factors weighed on the outlook, including weaker activity data in China, signs that growth and profits have peaked … “.
Swedbank rose 2.5% after reporting better-than-expected earnings in a booming mortgage market and record levels of commission income.
Cartier maker Richemont fell 1.3% even as quarterly sales at constant exchange rates more than doubled, driven by a strong performance in the Americas of its jewelry brands.
British luxury group Burberry and German sportswear company Puma also fell despite strong sales figures.
Sweden’s Ericsson fell 8.5% after reporting lower-than-market second-quarter baseline profits hit by lower sales in mainland China.
UK-listed mining company Rio Tinto fell 1.6% after reporting a 12% drop in quarterly iron ore shipments after storms affected its operations in Western Australia.
(Reporting by Sruthi Shankar in Bengaluru; editing by Uttaresh.V)