European shares edge higher, Air France jumps on aid deal

(Reuters) – European stocks opened higher on Friday, propped up by positive company updates, although investors remained cautious about a resurgence in U.S. COVID-19 cases and its impact on the global economy.

The pan-European STOXX 600 index <.STOXX> was up 0.6% by 0720 GMT, with technology <.SX8P>, chemical companies <.SX4P> and miners <.SXPP> leading sectoral gains.

Markets this week have swung between fears of a second wave of coronavirus cases and signs of more economic support from governments and central banks. The STOXX 600 is still on course to post a 1% weekly loss.

Air France-KLM jumped 5% after governments of France and Netherlands reached a deal on an aid package for the airline group, with the latter saying it would provide a 3.4 billion euro ($3.81 billion) financing package.

AMS rose 5.7% after the Austria-based semiconductor company rejected media allegations of market manipulation during its takeover of Osram .

(Reporting by Sruthi Shankar in Bengaluru; Editing by Anil D’Silva)