The European stock market declined on Friday

31.07.2020 22:40
The European stock market showed its first monthly decline since a sell-off in March, as growing doubts about the global economic recovery from the coronavirus crisis outweighed a series of better-than-expected reports from technology sector firms.

The index did not hold growth at the beginning of the session and closed down 0.9%, under pressure from a weak opening in the US stock market, as optimism caused by significant profits of the "big four" us technology companies dissipated.

Preliminary data on changes in Euro zone GDP showed that it fell by 12.1% in the second quarter - the strongest decline in history, as blocking measures suspended business activity.

"Exiting the lock together with massive stimulus brought a strong recovery in activity in the second quarter, which supported a rally in stocks, but the recovery seems to be leveling off.

Overall, market fluctuations may continue due to increased uncertainty, low confidence and a summer lack of liquidity, " equity analysts from Barclays said in a note.

The STOXX 600 index fell 1% in July, and fears of renewed COVID-19 cases also weighed on the mood, as Britain imposed stricter restrictions in Northern England and Spain saw a rise in new cases.

The technology stocks index rose, following the release of better-than-expected results from major technology companies in the US.

Nokia shares rose the most strongly in the STOXX 600 (+12.5%), after the company reported an increase in profit while reducing its low-margin business.

BNP Paribas shares rose 0.8% as second-quarter earnings were higher than expected, supported by revenue from trading fixed-income instruments and strong demand for corporate Finance.

Approximately 50% of the companies whose shares are included in the STOXX 600 reported quarterly results, 64% exceeded the profit forecasts significantly lowered earlier by analysts, according to Refinitiv data.
DAX, -0.5%; -4.0% for the week; slight change for the month;

CAC, -1.4%; -3.49% for the week; -3.1% for the month;

FTSE 100, -1.1%; -3.25% for the week; -4% for the month;

Ibex, -1.7%; -5.7% for the week; -4.9% for the month;

FTSE MIB, -0.7%; -4.9% for the week; -1.46% for the month.
10-year sovereign bond yields:

Germany -0.527%, +1.5 basis points

France -0.196%, +2.1 bps

UK 0.106%, +1.8 bps

Spain 0.337%, +2.0 bps

Italy 1.010%, +4.0 bps

Portugal 0.347%, +2.5 bps

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