European Stocks Climb on Telecom Boost After Vodafone Results

(Bloomberg) -- European stocks advanced as Vodafone Group Plc boosted telecommunication shares, while investors assessed risks from easing lockdown measures.

The Stoxx Europe 600 Index rose 0.3% at the close. Telecoms led the advance among sectors, with Vodafone up 8.7% after its organic service revenue growth beat forecasts. Utilities and retailers also outperformed, while real estate and travel and leisure stocks slipped.

European stocks rallied as much as 24% from a March low, before the rebound stalled in May on worries about a second wave of coronavirus cases and strained U.S.-China trade relations.

Germany recorded its first increase in infections in four days as it relaxed restrictions on daily life, while China’s Wuhan, where the pandemic began, is testing its entire population after reporting new cases for the first time since its lockdown was lifted. The U.S. government’s top infectious-disease expert told a Senate hearing that “consequences could be really serious” if states ease restrictions too soon.

“I think that the slower market direction you’ve seen over the last few weeks, where markets started to settle into their trading range, have led to less volumes in terms of client buying and selling,” Willem Sels, chief market strategist at HSBC Private Bank, said by phone. “It’s about remaining invested, because ultimately we see upside from here by year-end.”

Among other notable stock movers, ProSiebenSat.1 Media SE jumped 13% after U.S. private equity firm KKR & Co. took a new stake in the German broadcaster, stoking speculation of a takeover by rival Mediaset SpA. ThyssenKrupp AG slid 15% as its losses deepened and debt surged.

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