Europe open: Stocks mixed in early trading even as euro and gold extend gains

Stocks in Europe have started the session slightly higher despite concerns around a possible second wave of Covid-19 infections and ongoing tensions between China and the US.

Underscoring the former, at the weekend the UK government imposed a 14-day quarantine period on travellers from Spain following a rash of outbreaks in the Mediterranean country centred on the Catalonia region.

Overnight meanwhile, Chinese authorities moved to close down the US consulate in Chengdu even as authorities in the country reported the largest flare-up of Covid-19 cases in over four months, with 61 infections, mostly in the west of China.

Echoing the mood in markets, European Central Bank governing council member, Fabio Panetta told La Repubblica that "it's too soon to declare victory".

As of 0807 BST, the benchmark Stoxx 600 was drifting lower by 0.17% to 366.66, alongside a 0.35% rise for the German Dax to 12,886.89 while the FTSE Mibtel had dipped 0.1% to 20,058.98.

In parallel, euro/dollar was 0.42% higher to 1.1705, alongside another sharp gain for gold futures which were last trading up by 1.78% to $1,959.50/oz..

Adding to the pressure on Travel&Leisure stocks, Ryanair Holdings posted a €185m loss for the three months to June and cautioned about the impact that a second wave of coronavirus infections might have, even as Europe's largest budget carrier reiterated plans to gradually resume flights.

SAP AG reported a 1% increase in second quarter sales to reach €6.74bn for a 7% gain in earnings per share to €1.17 on a non-IFRS basis.

The German software provider also unveiled plans to float and list its Qualtrics unit in the US.

Germany's IFO Institute will publish its widely-followed business consumer confidence for July, at 0900 BST, alongside M3 money supply figures from the European Central Bank covering the month of June.