European Stocks En Route to High Weekly Close

European shares jumped this Friday, heading toward a high weekly close, with optimism over the business results season and the European Central Bank vowing to continue monetary support due to the high risks of the surge in Covid-19 cases.

The STOXX Europe 600 index rose 0.4% by 07:19 GMT, hitting its highest level in a week.

Auto stocks were the biggest gainers in early trading; French auto parts maker Valeo jumped 8.1% after it posted higher sales and profits in the first half of the year, and said it expected the deficit in key technology chips to narrow.

Shares in Dassault Aviation, the maker of Rafale aircraft, rose 7.1% after reporting higher sales and profits in the first half of the year, while the British mobile network operator Vodafone rose 2.6% after reporting a better-than-expected 3.3% increase in service revenue in the first quarter.

Preliminary readings of manufacturing and services activity for July in the Eurozone and UK are due later in the day, with numbers expected to be lower compared to the strong June data.