Day: August 2, 2020

European shares rebound from lows, euro set for best month in a decade

By Ritvik Carvalho

LONDON (Reuters) – European shares recovered from their lowest levels in a month on Friday, as investors looked past a severe economic contraction in the euro zone and on to company earnings, while the euro reached its highest in more than two years, set for its best month in a decade.

The euro zone’s economy recorded its deepest contraction on record in the second quarter, preliminary estimates showed, but inflation unexpectedly ticked up in July.

Gross domestic product in the bloc shrank by 12.1% from the previous quarter, the European Union’s statistics office, Eurostat, said in its flash estimates. The decline coincided with coronavirus lockdowns, which in many euro zone countries began to ease only in May.

The pan-European STOXX 600 <.STOXX> rose 0.6%, though it was on course to end the month flat or lower. Technology shares <.SX8P> led the rally, rising over 2% after Wall

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