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3 Minutes, by Read (Source: Reuters) Chipmakers boosted European stock prices on Friday, but gains were limited by weak bank stocks and mounting fears about the Delta version of the coronavirus. On July 1, 2021, a graph of the German stock market index DAX is shown at the stock exchange in Frankfurt, Germany. REUTERS/Staff The STOXX 600 index in Europe rose 0.3 percent to 456.81 points, with technology stocks up 1.1 percent. ASML Holding NV gained 1.4 percent after Micron Technology Inc stated it would begin employing ASML EUV equipment in production in 2024, while ASM International NV gained roughly 2.5 percent after forecasting greater order intake in the second quarter. Bank equities were the weakest performers, falling 1.3 percent as mounting concerns over the new, highly infectious COVID-19 type kept investors firmly in fixed income and drove yields lower. [GVD/EUR] Strong payrolls figures in the United States did little to raise borrowing rates. With a 2.4 percent decline for the week, the banking sector behind its rivals. Despite this, it has been the best-performing euro zone industry so far this year, as growing inflation expectations drove borrowing costs higher earlier in the year. The yields on European bank stocks are graphed. – The STOXX 600 index finished the week marginally lower as investors feared the new variation will stymie the continuing economic rebound. In May, data showed that producer prices in the EU increased faster than expected, owing to a spike in energy prices. “At the global level, inflation is still the most popular risk to discuss with clients,” Davide Oneglia, senior economist at TS Lombard, wrote in a note. “However, given the European area’s delayed reopening, subdued wage growth, and limited fiscal stimulus, the evolution of the Delta variant is a more pressing issue.” Travel and leisure gained 1.6 percent last week, but fell 1.4 percent this week due to virus-related restrictions in the UK. According to a judicial source, France’s SMCP dipped 0.4 percent after the business, along with Zara owner Inditex, was the focus of an inquiry for allegedly hiding “crimes against humanity” in China’s Xinjiang region. Volkswagen AG gained 0.2 percent after its U.S. arm reported sales of more than 211,000 vehicles in the first half of 2021, the most in nearly 50 years. Ambu’s stock dropped 9.2% to the bottom of the STOXX 600 index after the single-use medical equipment producer slashed its earnings forecast. In Bengaluru, Shreyashi Sanyal and Ambar Warrick reported; Shounak Dasgupta and Arun Koyyur edited./nRead More

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