Swedish earnings, Daimler support European stocks ahead of EU summit

European shares edged higher on Friday as focus turned to Brussels where European Union leaders are expected to hammer out details of a 750-billion-euro recovery fund, with positive earnings updates from Ericsson, Daimler, and other firms also supporting gains.

The pan-European STOXX 600 index rose 0.2% by 0714 GMT, with automakers jumping 1.8% after Daimler AG said it expects to post a smaller-than-expected operating loss in the second quarter. Sweden's main stock index jumped 0.9%, with truck maker Volvo AB and telecom equipment maker Ericsson reporting better-than-expected core profits, while Swedbank AB reported a smaller-than-expected fall in net profit.

Eurozone stocks were up 0.1% after rallying in the recent months on hopes that an EU-wide fund to support the pandemic-stuck economies could lift the bloc out of recession. Analysts believe markets could tolerate a few days' or weeks' delays with opposition from the Netherlands and the threat of a Hungarian veto weighing on chances of a deal.