European Equities Advance on Trade Optimism, Stimulus Bets

(Bloomberg) -- European stocks rose on investor optimism as leaders start negotiations for an economic recovery fund amid U.S.-China trade progress.

The Stoxx Europe 600 Index advanced 0.6% at the close, led by defensives such as utilities and health-care shares.

Investors focused on European Union talks over a proposed 750 billion-euro ($840 billion) program to help the bloc’s economies rebound from the Covid-19 lockdown. Positive developments on trade between the U.S. and China also boosted investor sentiment.

“Most institutions are still positioned to profit from a fading bear market rally, suggesting that the real pain trade remains to the upside,” BNP Paribas SA Head of Equity Derivatives Strategy Edmund Shing said.

Stocks have already recouped most of the losses sustained after the resurgence of coronavirus hotspots last week, particularly in the U.S. and China, which triggered fears of a second-wave of infections.

Among notable movers, Wirecard AG’s roller coaster moves continued after its chief operating officer was suspended. The stock dropped 35% after falling 62% on Thursday.

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