European stocks stabilized

European stocks stabilized on Friday, with the support provided by energy and mining companies offsetting the impact of pressures from the weak performance of German copper producer Aurobis after a profit warning, and Volkswagen after a downgrade in the stock’s recommendation.

By 0711 GMT, the European STOXX 600 index settled at 457.9 points, but it is heading for gains for the second week if this trend continues.

The German DAX index fell 0.2 percent, with Aurobis shares falling 18 percent after the largest copper producer in Europe said that it would not achieve the profits it expected for the entire year.

But mining sector shares rose 0.7 percent after observing an increase in most basic metal prices.

Shares of the oil and gas sector increased 1.6 percent as crude prices rose due to scarcity of supplies and expectations that the OPEC+ alliance will extend production cuts until the end of the year.

Volkswagen shares fell 2.5 percent after UBS Bank lowered its recommendations for the German automaker’s stock to “sell” from “neutral.”

Investors are focusing on factory activity data in the euro zone for August to determine the European Central Bank’s expectations on interest rates, and its next meeting is scheduled in two weeks.