European stocks log first weekly drop in eight, Allfunds jumps in debut



* Allfunds jumps 20% on market debut

* PMIs fail to spur big moves in indexes

* Moncler falls as Q1 sales lag peers (Updates to close)

By Sruthi Shankar

April 23 (Reuters) - European stocks marked their first weekly loss in eight on Friday as a surge in global coronavirus cases offset optimism about a strong earnings season, while Madrid-based Allfunds jumped on its Amsterdam market debut.

The pan-European STOXX 600 .STOXX slipped 0.2% and was on course for a 0.8% weekly drop. Defensive plays such as the healthcare sector and consumer stocks were among the biggest decliners, while surging commodity prices lifted miners .SXPP .

Sentiment was hit following reports on Thursday that U.S. President Joe Biden planned to raise income taxes on the wealthy, a proposal some said would be hard to pass in Congress.

Meanwhile, India reported the world's highest daily tally of coronavirus cases for a second day and Japan was set to declare "short and powerful" states of emergency for Tokyo, Osaka and two other prefectures as the country struggles to contain a resurgent pandemic.

"We've fears of a third wave of infection in many parts of the world. That is going to keep acting as a drag on how far indexes will grow," said Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown.

Meanwhile, Spanish fund distribution firm Allfunds ALLFG.AS jumped more than 20.4% on its first day of trading, boosting an IPO market dented by last month's underwhelming Deliveroo listing.

Luxury puffer jacket maker Moncler MONC.MI fell 4% after reporting first-quarter sales that were a touch lower than the year-earlier quarter and lagging peers.

About 10% of STOXX 600 companies have reported so far, and 67% of them have topped profit expectations, according to Refinitiv data.

Major regional indexes barely moved after a survey showed the euro zone's recovery from the pandemic-led economic downturn was much stronger than expected in April.

Italian luxury goods group Tod's TOD.MI jumped 11.4% after France's LVMH LVMH.PA agreed to increase its stake in the company to 10%.

French media giant Vivendi VIV.PA rose 2.8% as strong performance at its music unit Universal and a sales jump at its publishing division helped its quarterly revenue grow.

Strong results from Finnish firms Metso Outotec MOCORP.HE and Wartsila WRT1V.HE , and Paris-listed Groupe SEB SEBF.PA saw them top the STOXX 600.

Shares in hygiene products group Essity ESSITYb.ST slumped after JP Morgan said its first quarter results were a miss across the board.
Reporting by Sruthi Shankar and Susan Mathew in Bengaluru; Editing by Shounak Dasgupta, Kirsten Donovan

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