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European Shares Rise On Stimulus Hopes

stockmarkets jan23 26jun20 lt

European stocks advanced on Friday as a slew of positive company updates as well as hopes of more global stimulus helped offset concerns about a resurgence in U.S Covid-19 cases.

Sentiment was also bolstered after U.S. regulators eased bank rules that will free up billions of capital.

Closer home, European Central Bank President Christine Lagarde said the worst of the coronavirus crisis may be over for the world, but the recovery will be restrained and incomplete.

The pan European Stoxx 600 rose by 0.9 percent to 363.15 after climbing 0.7 percent on Thursday. The German DAX gained 0.8 percent, France's CAC 40 index rallied 1.2 percent and the U.K.'s FTSE 100 added 1.5 percent.

Wirecard AG shares extended losses to plunge another 47 percent after the payments company filed for insolvency.

Software AG shares rose over 1 percent. The enterprise software company said it expects to break through the 1 billion euros revenue mark in 2023.

Vonovia SE, a residential property company, rallied 1.3 percent. The company is entering Dutch Residential Market with the acquisition of a 2.6 percent stake in Vesteda Residential Fund.

Air France-KLM shares jumped 3.4 percent after governments of France and Netherlands reached a deal on an aid package for the airline group.

AMS declined 1.7 percent. The company rejected media allegations of unlawful trading by management during its takeover of Osram.

Swedish retailer Hennes & Mauritz AB or H&M Group lost 2 percent. The company reported second-quarter loss after tax, excluding IFRS 16, of 5.03 billion Swedish kronor, compared to net income of 4.57 billion kronor in the prior year.

easyJet climbed 2.3 percent as it reported the sale and leaseback of six A320neo aircraft to boost liquidity amid the Covid-19 pandemic.

Aston Martin plunged 10 percent after the carmaker said it would raise about £260m by selling new shares.

Pub operator Marston's tumbled 4.3 percent after saying it was uncertain about its financial outlook in the short-term.

Weir Group surged 6.5 percent after the engineering company completed refinancing of its main banking facilities.

In economic news, French consumer confidence improved to a three-month high in June as coronavirus containment measures were relaxed, survey data from the statistical office Insee showed.

The consumer sentiment index advanced to 97 in June from 93 in May. Although the score was above economists' forecast of 95, the reading was below its long-term average of 100.

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