Earnings help nudge European stocks higher, while airlines hit by Biden tightening restrictions

Earnings help nudge European stocks higher, while airlines hit by Biden tightening restrictions

European stocks rose on Monday, with strong earnings and signs that California is reopening offsetting worries about the travel industry.

Up for 10 of the last 12 weeks, the Stoxx Europe 600 SXXP, -0.31% edged up 0.3%.

U.S. stock futures ES00, 0.43% also rose ahead of a slate of key results from the technology sector. The S&P 500 SPX, 0.36% rose 1.9% last week as earnings season kicked off and new President Joe Biden attempted to push through a $1.9 trillion stimulus package.

“No one wants to jump off of the back of a running bull. So, despite the skyrocketing blue-chip prices, any downside correction to the big U.S. stock indices will likely be seen as interesting dip buying opportunities by investors,” said Ipek Ozkardeskaya, senior analyst at Swissquote Bank.

The 7-day average of new coronavirus cases and hospitalizations in the U.S. appears to have peaked, according to data from the COVID-19 tracking project, as U.K. new cases also have dropped substantially. California Gov. Gavin Newsom is expected to lift strict stay-at-home orders, allowing outside dining and indoor salons in the biggest state economy in the U.S., according to local press reports.

Shares of airlines such as International Airlines Group IAG, -6.23% and Deutsche Lufthansa LHA, -2.09% dropped sharply, as Biden is set to announce a ban on entry from European Union countries, while the U.K. is discussing tightening restrictions at its borders.

Shares of technology investment company Prosus PRX, 4.58% surged 8% in Amsterdam, after Chinese internet company Tencent Holdings 700, +10.93%, in which it holds a 31% stake, jumped 10% in Hong Kong.

Siemens Energy ENR, 3.42% rose 3%, as the company reported a surprise adjusted profit in its fiscal first quarter, helped by results both at its gas-power unit as well as mostly held wind-turbine maker Siemens Gamesa Renewable Energy SGRE, 3.13%.

Philips Electronics PHIA, 2.89% rose 3%, as the Dutch conglomerate reported largely in-line results for the fourth quarter and reiterated 2021 goals.

Shares of support services provider Solutions 30 S30, -19.70% plunged 15%, as short seller research firm Muddy Waters issued an open letter calling its accounting “highly aggressive and misleading.”

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