European stocks stable following gains throughout the week

European stocks paused on Friday after gains through the week as another record surge in U.S. coronavirus cases dulled optimism from a brisk recovery in China’s services sector.

The pan-European STOXX 600 index was largely flat after opening marginally higher, with trading volumes thinned by a U.S. market holiday.

Technology stocks led the gains, rising 0.7%, while banks, insurers and oil & gas fell after a strong rally in the previous session. The benchmark index was headed for a 2.8% weekly gain as hopes of a COVID-19 vaccine and a series of strong data pointed to a global economic recovery from the health crisis. However, investors are skeptical of further gains in equities as the United States set a new daily global record for COVID-19 cases on Thursday, driving several U.S. states to delay their reopening plans.

A private survey showed that China’s services sector expanded at the fastest pace in over a decade in June as the easing of lockdown measures revived consumer demand, though companies continued to shed jobs.

Paris’s blue-chip CAC 40 slipped 0.3% as French Prime Minister Edouard Philippe resigned ahead of a government reshuffle by President Emmanuel Macron designed to win back disillusioned voters ahead of a possible re-election bid.

Asian shares rallied to a fourmonth high on Friday on robust U.S. payrolls data and a brisk pickup in Chinese service sector activity, but a surge in coronavirus cases in the United States kept a lid on stronger gains.

MSCI’s broadest index of AsiaPacific shares outside Japan rose 0.66%, reaching the highest level since late February, while Japan’s Nikkei rose 0.40%. Mainland Chinese shares, which were among the best performers over the past month, extended gains, with the Shanghai composite index hitting a high last seen in April 2019.

Oil prices eased on concerns about the resurgence of the coronavirus globally and in the United States, the world’s largest oil consumer. Brent crude fell 0.65% to $42.86 a barrel while U.S. crude dropped 0.66% to $40.38 a barrel.

This article was compiled by BOV Asset Management Limited, a member of the BOV Group. BOV Asset Management,TG Complex, Suite 2, Level 3, Brewery Str., Mriehel BKR 3000. Email: infoassetmanagement@bov.com Internet address: www.bovassetmanagement.com. BOV Asset Management is licensed by the MFSA.