MW: Europe stocks take a breather after Greece drives strong week
European stocks took a breather on Friday as a crucial German vote on Greece’s bailout program loomed, but equities were still headed for their best weekly finish since the start of the year.
The Stoxx Europe 600 SXXP, +0.05% held steady at 405.82, but was looking at a gain of 4.4% for the week, which would be the best return on that basis since the week ended January 23, according to FactSet data.
Equities have been bolstered this week by signs that the Greece crisis is abating. German parliament will vote Friday on an agreement to clear the way for negotiations over a third bailout for Greece. The European Commission proposed Thursday to extend a €7 billion ($7.71 billion) bridge loan to Greece from an emergency-funding program run by the European Union. The Bundestag debate is scheduled to begin at 10 a.m. local time in Berlin, or 4 a.m. Eastern Time.
That debate is the next hurdle before formal talks can begin. The Eurogroup of eurozone finance ministers on Thursday said they had agreed “in principle” to grant another bailout to Greece, which could be booted from the euro if it goes into debt default.
Stock markets remain closed in Greece, as well as trading in those country’s banks.
Other benchmarks: In Frankfurt, the DAX 30 DAX, -0.13% was flat at 11,712.68, while France’s CAC 40 index PX1, -0.12% eased 0.1% to 5,115.17. The FTSE 100 index UKX, -0.24% dipped 0.1% to 6,788.96.
The euro EURUSD, +0.1103% traded slightly higher against the dollar at $1.0894. The dollar has rallied this week on receding fears over Greece and increased expectations surrounding an interest rate hike in the U.S. Earlier this week, Federal Reserve Chairwoman Janet Yellen said the Fed remains on track to hike rates this year.
Individual movers & shakers: Several Swedish stocks, all Stoxx 600 heavyweights, were rising on earnings. LM Ericsson Telefon AB ERICB, +5.87% ERICA, +5.44% shot up 5% after the Swedish mobile network group said mobile broadband sales in North America stabilized in the second quarter. That’s as profit was hit by higher costs.
Volvo AB VOLVB, -2.20% VOLVY, +3.56% rose nearly 1% after the truck maker said second-quarter profit more than doubled, helped by favorable currency effects and cost cuts. And lock maker Assa Abloy ASSAB, +1.02% posted a 23% gain in profit.
Among other movers, shares of fragrance maker Givaudan SA GIVN, +5.05% jumped 4.8% on a gain in first-half profit, while home-appliance maker Electrolux AB ELUXB, +3.59% jumped 3.3% as it swung to a profit.
