European stocks close stable, amid worrying data and strong earnings

European stocks close stable, amid worrying data and strong earnings

European stocks closed stable today, after a jump in the weekly jobless claims data in the United States and a drop in consumer confidence in the euro area, which cast a shadow on hopes for an economic recovery, erasing early gains thanks to strong business results.

The European Stoxx 600 index gave up gains of 0.8 percent after data showed a rise in US jobless claims for the first time in about four months, which indicates a faltering labor market in light of the return of Covid-19 injuries to rise.

According to Reuters in Europe, consumer confidence deteriorated in July despite expectations for improvement.

"The big question is: What is the pent up demand that we will see in the coming months? Sales figures (in Europe) are encouraging so far, but the confidence figures for July cast doubt on Spending horizon. "

The European travel and entertainment sector index - hardest hit by the pandemic containment measures - fell 1.1 percent. Sector shares have lost more than 36 percent this year.

Limiting the market’s main index losses was a 2.1 percent rise in the auto sector after Daimler expected an increase in operating profit for its Mercedes-Benz auto unit in 2020 amid a rebound in sales.

Unilever shares rose 7.9 percent, as sales for the second quarter of the year fell far below expectations. Shares of Nestle and Danone rose about 1.5 percent each.