By Tommy Stubbington
Stocks edged lower Friday, but markets in Europe and the U.S.
remained on course for monthly gains having largely shrugged off
recent turmoil in Chinese stocks.
Shares in the U.S. and Europe had fallen sharply at the start of
the week as a slump in Chinese equities spilled over into global
markets, but have since more than recovered those losses as
investors turned to corporate earnings and clues on the timing of a
Federal Reserve rate increase.
The Shanghai Composite Index fell again on Friday, closing out
its worst month in nearly six years.
But markets elsewhere showed little reaction to the latest
decline. Japan's Nikkei index rose 0.3%.
In Europe, the Stoxx Europe 600 was 0.2% lower late morning,
weighed down by losses in mining and energy stocks, but on course
for a weekly rise.
Stock futures indicated a 0.1% opening decline for the S&P
500. Changes in futures aren't necessarily reflected in market
moves after the opening bell.
The S&P has also risen this week, although it ended flat on
Thursday after data showing the U.S. economy expanded at a slower
pace than expected in the second quarter.
In Europe, investors focused on the latest batch of corporate
earnings.
Shares in Airbus Group climbed after the plane maker reported a
rise in second-quarter profit.
French bank BNP Paribas and chemical company Arkema both rose
after better-than-expected results.
Steel pipe maker Vallourec fell after reporting a loss for the
first half of the year.
Among companies on the Stoxx Europe 600 that have so far
reported second-quarter results, 54% have exceeded profit
expectations, according to FactSet data. That compares with 50% in
the first quarter.
"The earnings season in Europe has been pretty good," said
Christian Stocker, an analyst at UniCredit.
But concerns over the Chinese economy are likely to remain, and
could hold back shares in mining companies and car makers in the
coming months, he said.
In currency markets, the euro was up 0.4% against the dollar at
$1.0974.
In commodities, Brent crude oil was 1.2% lower at $52.69 a
barrel. Gold was down 0.8% at $1,080.10 a troy ounce.
Write to Tommy Stubbington at tommy.stubbington@wsj.com