(Reuters) – European stocks posted a second consecutive week of gains on Friday as bumper forecasts from Denmark’s Pandora and Novo Nordisk set a brighter tone for the earnings season, while investors kept an eye out for signs of fresh U.S. stimulus.

The STOXX 600 index <.STOXX> ended up 0.6% to close the week with a gain of 2.1%.

Global equities advanced this week as growing expectations the Democratic party will win U.S. elections next month revived hopes for more economic stimulus there.

In Europe, a string of mergers and acquisitions as well as a rebound in beaten-down sectors like travel & leisure <.SXTP>, banks <.SX7E> and oil & gas <.SXEP> lifted regional markets.

Shares of aircraft engine maker Rolls Royce

have almost doubled in value since Monday, while British Airways owner-IAG

jumped 13.2%.

Jewellery maker Pandora rose 17.2% to the top of STOXX 600 on Friday after hiking its profit guidance on stronger sales and a big boost to its online business.

Drugmaker Novo Nordisk

gained 3.3% after raising its 2020 sales and operating outlook.

German online fashion company Zalando

rose 3.2% and Global Fashion Group

surged 24.0% after upgrading their earnings outlook.

Companies on the STOXX 600 are expected to post a profit decline of 38% in third quarter and 22.7% in the current quarter, according to Refinitiv data, as businesses recoup from the coronavirus-driven hit.

“Even though we’ve had rising infection rates in developed markets for the best part of the month, there hasn’t been any negative impact on consensus earnings forecasts,” said Alastair George, head strategist at Edison Investment Research.

“As long as strict lockdowns can be avoided, equities are likely to continue to make progress on the back of very loose monetary policy and global stimulus packages as well.”

Europe surpassed 100,000 daily reported COVID-19

(Bloomberg) — Trading in Pandora A/S shares gave the jewelry maker its highest valuation since May 2018, after it raised its guidance for the year citing a spike in online demand.



a close up of a table: Silver and white gold rings sit on display in the window of a Pandora A/S jewelry store in Copenhagen, Denmark.


© Photographer: Freya Ingrid Morales
Silver and white gold rings sit on display in the window of a Pandora A/S jewelry store in Copenhagen, Denmark.

Copenhagen-based Pandora rose more than 10% after the market opened on Friday. Denmark’s index of benchmark shares was up about 0.9%.

Management opted to publish preliminary third-quarter results late on Thursday, after a “strong” performance improved its prospects for the year. It now expects 2020 Ebit margin to reach at least 17.5%, compared with 16% previously. That’s after online organic growth of 89% in the quarter.



a close up of a table: Silver and white gold rings sit on display in the window of a Pandora A/S jewelry store in Copenhagen, Denmark.


© Photographer: Freya Ingrid Morales
Silver and white gold rings sit on display in the window of a Pandora A/S jewelry store in Copenhagen, Denmark.

Click here for more details of Pandora’s preliminary results

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Pandora seems to be getting “more bang for the buck” from its advertising, and is “catching consumer attention as peers hold back” on spending, Frans Hoyer, an analyst at Handelsbanken, said in a note.

“At a time when peers generally have a firm grip of the purse strings, Pandora says that continued advertising spend has enabled it to better catch consumer attention,” Hoyer said.

Pandora’s share price has soared 85% so far in 2020, as CEO Alexander Lacik succeeded in turning around the company’s fortunes after years of disappointing results. Pandora managed to improve its results despite the ongoing pandemic. On average, about 90% of its stores were open last quarter. By the end of the period, that number had risen to 95%, it said.

“Pandora continues to consider the macroeconomic environment and future Covid-19 development as uncertain and unpredictable,” it said.