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* STOXX 600 records second week of gains
* Pandora jumps as online demand boosts sales
* Europe records 100,000 daily coronavirus cases
(Updates to market close)
By Sruthi Shankar
Oct 9 (Reuters) - European stocks posted a second
consecutive week of gains on Friday as bumper forecasts from
Denmark's Pandora and Novo Nordisk set a brighter tone for the
earnings season, while investors kept an eye out for signs of
fresh U.S. stimulus.
The STOXX 600 index ended up 0.6% to close the week
with a gain of 2.1%.
Global equities advanced this week as growing expectations
the Democratic party will win U.S. elections next month revived
hopes for more economic stimulus there.
In Europe, a string of mergers and acquisitions as well as a
rebound in beaten-down sectors like travel & leisure,
banks and oil & gas lifted regional markets.
Shares of aircraft engine maker Rolls Royce have
almost doubled in value since Monday, while British Airways
owner-IAG jumped 13.2%.
Jewellery maker Pandora rose 17.2% to the top of
STOXX 600 on Friday after hiking its profit guidance on stronger
sales and a big boost to its online business.
Drugmaker Novo Nordisk gained 3.3% after raising
its 2020 sales and operating outlook.
German online fashion company Zalando rose 3.2%
and Global Fashion Group surged 24.0% after upgrading
their earnings outlook.
Companies on the STOXX 600 are expected to post a profit
decline of 38% in third quarter and 22.7% in the current
quarter, according to Refinitiv data, as businesses recoup from
the coronavirus-driven hit.
"Even though we've had rising infection rates in developed
markets for the best part of the month, there hasn't been any
negative impact on consensus earnings forecasts," said Alastair
George, head strategist at Edison Investment Research.
"As long as strict lockdowns can be avoided, equities are
likely to continue to make progress on the back of very loose
monetary policy and global stimulus packages as well."
Europe surpassed 100,000 daily reported COVID-19 cases for
the first time on Thursday, after countries such as Russia and
United Kingdom saw no respite in the mounting number of
infections every day in the past five days.
However, UK stocks got a boost as British finance minister
Rishi Sunak announced his latest programme to try to stave off a
surge in unemployment.
Euronext declined 4.4% after hitting a record high
last week. London Stock Exchange accepted a 4.325
billion euro ($5.09 billion) cash offer from the pan-European
bourse operator for the Milan stock exchange.
German chemicals group BASF fell 3.8% as it
slashed its outlook after heavy writeoffs in third quarter.
(Reporting by Sruthi Shankar in Bengaluru; Editing by Arun
Koyyur, Kirsten Donovan)
