Europe close: Stocks recoup losses follow positive vaccine news

European stocks recouped most of the previous session's losses on Friday as positive news on Pfizer's booster shot offset worries over the rising number of global Covid-19 cases.

Overnight, Pfizer and BioNTech said they expected that a third dose of their existing vaccine would be "highly effective" against the Delta variant.

The pan-European Stoxx 600 index was up 1.34% to 457.67 despite persistent concerns over the rising number of Covid cases.

France's CAC 40 outperformed, up 2.07% at 6,529.42, while the FTSE MIbtel put on 1.67% to 25,051.82.

"It seems incredible to report, but, for US indices at least, the latest ‘dip’ (that one from yesterday of about eight hours) has already been bought," said IG chief market analyst Chris Beauchamp.

"Yet again al the things that stock markets seemed to worry about yesterday don’t matter today – a hawkish Fed, rising Delta cases and the imminent arrival of US earnings season have all been brushed aside as Friday’s trading ends in Europe with markets in bullish form, while on Wall Street stocks have a definite spring in their step."

In the UK, official data showed May GDP grew by a lower-than-expected 0.8% from a revised 2% in April, coming in well below expectations for 1.5% growth. April’s figure was revised down from 2.3%.

This marked the fourth consecutive month of growth and leaves the economy 3.1% below where it was in February 2020, before the Covid-19 pandemic hit.

In equity news, British Airways-owner IAG, easyJet and Ryanair all rose as the UK planned to scrap quarantine for fully-vaccinated arrivals from other countries in the coming weeks.

French aircraft maker Airbus gained after it reported a 52% jump in deliveries in the first half of the year.

British luxury goods group Burberry rose 4% after Goldman Sachs upgraded the stock to “buy”, while Italian rival Salvatore Ferragamo slipped after the US bank downgraded it to “sell”.

Luxury goods peers LVMH Moet Hennessy and Christian Dior were also higher on positive read-across.