Major European Markets Close Weak After Choppy Session
(RTTNews) - European stocks saw a choppy session on Wednesday as investors appeared somewhat clueless about a potential new coronavirus relief plan as they digested a couple of treats from U.S. President Donald Trump.
Markets were also reacting to updates about coronavirus spread. In France, new coronavirus cases continued to see a daily rise of over 10,000. The French government has placed Paris on maximum Covid-19 alert.
Trump had tweeted Tuesday afternoon that he has instructed his administration's negotiators to stop stimulus discussions with Democrats until after the presidential election, triggering heavy selling in the U.S. market.
Later on Tuesday, Trump indicated he would support individual stimulus measures after calling off negotiations over a broader relief package.
"The House & Senate should IMMEDIATELY Approve 25 Billion Dollars for Airline Payroll Support, & 135 Billion Dollars for Paycheck Protection Program for Small Business. Both of these will be fully paid for with unused funds from the Cares Act. Have this money. I will sign now!" Trump tweeted.
He later added, "If I am sent a Stand Alone Bill for Stimulus Checks ($1,200), they will go out to our great people IMMEDIATELY. I am ready to sign right now. Are you listening Nancy?"
The pan European Stoxx 600 ended down 0.12%. The U.K.'s FTSE 100 edged down 0.06% and France's CAC 40 declined 0.27% and Germany's DAX moved up 0.17%. Switzerland's SMI ended lower by 0.44%.
Among other markets in Europe, Denmark, Iceland and Ireland closed higher. Belgium, Finland, Greece, Norway, Russia and Spain declined, while Austria, Czech Republic, Netherlands, Poland, Portugal, Sweden and Turkey ended flat.
In the UK market, Rolls-Royce gained more than 5%, rebounding strongly after losses in the previous session. CRH, Glencore, Kingfisher, Fresnillo, Ocado Group, Rio Tinto, Taylor Wimpey, Antofagasta and Melrose gained 2 to 3%.
Among the losers, TUI declined sharply after the company said Birgit Conix, a member of the Executive Board and Chief Financial Officer, will leave the company as of 31 December 2020.
M&G, EasyJet, Relx, BT Group, Avast, DCC, TUI, Rightmove and British Land Company declined 2 to 3.4%.
Supermarket chain Tesco rose sharply as it reported a higher pretax profit for the first half of fiscal 2021 on rising revenue. However, the stock pared its gains and ended lower by about 0.6%.
In the French market, ArcelorMittal, Publicis Groupe, Societe Generale, Valeo, Engie and Renault gained 2 to 3.2%, while Safran, Orange, Technip, Cap Gemini and Sanofi ended lower by 1.2 to 2%.
In Germany, Deutsche Post ended nearly 4% up. Covestro, BASF, HeidelbergCement, Continental, Infineon Technologies and Daimler gained 2 to 3%.
BMW shares ended on a firm note after the company reported that its third-quarter total vehicle sales increased 8.6% from last year. Lufthansa and Volkswagen also closed notably higher.
On the other hand, Bayer, Thyssenkrupp, Munich RE, Wirecard, Deutsche Telekom, Fresenius and Allianz lost 1 to 3%.
In economic releases, German industrial production dropped 0.2% on a monthly basis in August, in contrast to a 1.4% rise posted in July, data from Destatis revealed. Economists had forecast an increase of 1.5%.
On a yearly basis, industrial production decreased 9.6% following a 10% drop in July.
France's current account deficit narrowed in August from the previous month, the Bank of France's report said. According to data from the customs office, the trade deficit widened as exports decreased marginally amid an increase in imports in August. The current account deficit totaled EUR 4.7 billion in August versus a EUR 5.7 billion shortfall in July.
U.K. house prices increased at the fastest pace in more than four years in September, data from the Lloyds Bank subsidiary Halifax and IHS Markit showed.
House prices grew 7.3% on a yearly basis in three months to September, following a 5.2% rise in three months to August. On a monthly basis, house prices were up 1.6% but slightly slower than the 1.7% increase logged in August.
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