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

Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.

All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.

Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.

We are using cookies to give you the best experience on our website. Read more or change your cookie settings.

Risk Warning: Your capital is at risk. Leveraged products may not be suitable for everyone. Please consider our Risk Disclosure.