European stock market rise, but set for weekly losses

European stocks inched higher on Friday, propped up by positive company updates, although investors remained cautious about a resurgence in U.S. COVID-19 cases and its impact on the global economy.

The pan-European STOXX 600 index was up 0.4%, with technology .SX8P, industrial .SXNP and media companies .SXMP leading sectoral gains. For the week, however, the STOXX 600 was on course to fall 1%.

Markets this week have swung between fears of a second wave of coronavirus cases, particularly in the United States, and optimism over improving economic data in Europe as many countries relax lockdown measures.

“The volatility levels are still elevated. We’ll have these 1% moves on a regular basis throughout the summer,” said Keith Temperton, a sales trader at Tavira Securities. “As the liquidity dries up, the volatility will increase.”