European Stocks Close Notably Lower For 2nd Straight Day

(RTTNews) - European stocks ended lower on Tuesday, extending losses from previous session, as worries about economic growth amid continued surge in coronavirus cases and reports of stricter lockdown measures triggered heavy selling at several counters.

Investors also digested the latest batch of earnings news. Some top names including HSBC Holdings, BP and Banco Santander reported encouraging results, but the mood remained bearish due to virus jitters.

The pan European Stoxx 600 ended down 0.95%. The U.K.'s FTSE 100 slid 1.09%, Germany's DAX slipped 0.93% and France's CAC 40 declined 1.77%. Switzerland's SMI ended lower by about 1%.

Among other markets in Europe, Austria, Belgium, Finland, Ireland, Norway, Poland, Portugal, Russia, Spain and Sweden ended with sharp to moderate losses.

Greece and Netherlands edged down marginally, while Czech Republic and Iceland closed higher.

M&G, the biggest loser in U.K.'s FTSE 100 index, slid as much as 7.4%. Persimmon, Prudential, Legal & General Group and WPP lost 5 to 5.4%.

Barratt Developments, Land Securities, IAG, BAE Systems, Barclays Group, Standard Life, Glencore, Vodafone Group, Aviva, Rolls-Royce Holdings, Melrose and Royal Dutch Shell lost 3 to 4.5%.

On the other hand, HSBC Holdings gained 3.4% after reporting a 35% fall in quarterly profit. The bank said it would embark on a pandemic-induced overhaul of its business model.

Ocado Group, Croda International and DCC moved up 2 to 2.3%, and Hikma Pharmaceuticals surged up 1.85%. Fresnillo, Antofagasta, Spirax-Sarco and GlaxoSmithKline also ended notably higher.

In the German market, Thyssenkrupp tumbled more than 6%. Lufthansa shed about 5.3%, while MTU Aero and Continental lost more than 3% each.

Infineon Technologies, BMW, Volkswagen, Allianz, HeidelbergCement, Daimler and Munich RE also closed sharply lower, while Merck and RWE posted strong gains.

In France, Renault, Technip and ArcelorMittal drifted down by more than 5%. Societe Generale, Bouygues, Unibail Rodamco, BNP Paribas and Credit Agricole lost 4 to 5%.

STMicroElectronics, Airbus, Publicis Groupe, Peugeot and Sanfoi also declined sharply. Cap Gemini shares moved up by about 2.5%.

Shares of Spanish lender Banco Santander saw some brisk buying thanks to an earnings rebound.

In economic news, data published by the European Central Bank showed Eurozone's broad monetary aggregate M3 expanded by more-than-expected 10.4% on a yearly basis, faster than the 9.5% rise in August. Economists had forecast an annual increase of 9.6%.

Spain's unemployment rate increased in the third quarter to the highest level since early 2018, moving up to 16.26%, as the coronavirus pandemic took its toll on the labor market, the statistical office INE reported.

The unemployment rate was 15.33% a quarter earlier.

France's producer prices declined in September. Data from the statistical office Insee showed producer prices decreased 2.4% annually in September, following a 2.5% fall in the previous month.

British retailers expect sales to fall in November after reporting a sharp fall in October, the latest monthly Distributive Trades Survey from the Confederation of British Industry showed Tuesday.

Meanwhile, there is continued uncertainty about a U.S. coronavirus relief bill although House Speaker Nancy Pelosi said a deal with Treasury Secretary Steven Mnuchin is still possible before the upcoming presidential election.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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