European Stock Market Rises As Traders Weigh Earnings And Growth Prospects

European equities rose as investors shifted their attention to the first-quarter corporate earnings season, while investors assessed the potential for economic growth as statistics from China indicated that the recovery was well underway.

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By 2:24 p.m., the Stoxx 600 Index had gained 0.5%. in London. Shares in travel and leisure and finance outperformed, while energy and food and beverage lagged. The blue-chip Euro Stoxx 50 index was about to close at its highest level since 2007.

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Ericsson AB fell after warning that a decline in 5G expenditure in some of the company's more mature areas will continue. EasyJet Plc rose after stating that reservations will stay robust in the coming months, causing the business to raise its profitability goal for the second time this year. 

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GSK Plc fell after agreeing to purchase Canadian biotech Bellus Health Inc. for around $2 billion in order to expand its pipeline of experimental medicines.

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After being roiled by the financial crisis last month, European shares have returned to their highest level in almost a year. In April, they too outperformed American stocks, with banking and energy leading the way. 

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Nonetheless, the retreat of investors into safe havens such as health care and telecommunications shows no signs of abating. The focus is now shifting to the earnings season, which will reveal how firms dealt with rising inflation, weaker consumer demand, and economic challenges.

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