European stocks rise on eve of earnings season as traders look past virus spike

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European stocks climb on eve of earnings season

European stocks rose on Monday, as optimism surrounding second-quarter earnings offset a disturbing rise in coronavirus cases, including in the key U.S. state of Florida.The German DAX DAX, +0.90%, French CAC 40 PX1, +0.71% and U.K. FTSE 100 UKX, +0.97% also advanced.Earnings season for the second quarter gets under way this week. In the U.S., major banks including Citigroup C, +6.47%, JPMorgan Chase JPM, +5.46% and Wells Fargo WFC, +5.94% are due to report earnings.

Markets also are looking ahead of the gathering of European leaders to discuss the European Union recovery fund proposal. “Even though the pandemic is getting worse, stocks in Asia drove higher and the feel-good factor spilled over to this part of the world,” said David Madden, market analyst at CMC Markets U.K.

 

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