European Shares Extend Losses On Economic Worries

European stocks fell on Thursday to extend losses from the previous session, with concerns of a prolonged economic downturn and rising U.S.-China tensions weighing on markets.

Fed Chair Jerome Powell warned of a recession worse than any since World War Two, and called for more fiscal support to shield the world’s largest economy from long-term economic damage due to the coronavirus pandemic.

Meanwhile, extra debt shouldered by governments and companies to steer through the Covid-19 crisis will “come back to haunt us”, the boss of the Organization for Economic Cooperation and Development has warned.

The pan European Stoxx 600 dropped 1.65 percent to 328.52 after declining 1.9 percent on Wednesday. The German DAX, France’s CAC 40 index and the U.K.’s FTSE 100 were down between 1.6 percent and 2.3 percent.

Hargreaves Lansdown shares jumped almost 5 percent after the fund platform
reported net new business of £4.0 billion in the four months ending April 30.

Marston’s tumbled 3.3 percent. The brewery, pub and hotel operator has secured a £70m funding boost to help it cope with the effects of the Covid-19 shutdown.

Retailer WH Smith lost 4.3 percent. After reporting a slight fall in pretax profit for the first half of fiscal 2020, the company said it expects results in the second half to be hit by the coronavirus pandemic.

Housebuilder Persimmon plummeted 5 percent. The company said it would reopen sales offices from May 15.

Pharmaceutical giant Sanofi fell 2.2 percent. CEO Paul Hudson has said that the U.S. will likely have first access to its Covid-19 vaccine if it succeeds.

Exchange operator Euronext rallied 2.8 percent after it reported a 55 percent jump in quarterly revenue.

Electric utility EDF climbed 2.7 percent after maintaining its nuclear output forecast.

Industrial group Bouygues slumped 4.7 percent after widening its first-quarter net loss.

BMW Group shares fell 2.7 percent. The automaker stated that, as expected, its full-year 2020 sales and earnings before tax will be significantly lower than the previous year. The company also said the outlook for 2021 remains extremely uncertain.

SGL Carbon lost 1.8 percent after the carbon and graphite product manufacturer slipped to a loss in the first quarter and projected a decline in sales revenue and recurring EBIT for the second quarter.

Merck KGaA declined 1.4 percent after lowering its profit outlook for the year.

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European Shares Mixed Amid Earnings Deluge

European stocks were mixed on Tuesday as fears of U.S.-China trade tensions and worries over a second round of covid-19 infections kept underlying sentiment cautious.

Dismal inflation data from China and mixed earnings updates also weighed on markets.

The pan European Stoxx 600 was up 0.2 percent at 340.44 after declining 0.4 percent on Monday. The German DAX was marginally higher and the U.K.’s FTSE 100 rose about 0.4 percent, while France’s CAC 40 index slid 0.2 percent.

Steelmaker ArcelorMittal declined 3.4 percent after announcing a proposed offering of common shares and mandatorily convertible notes for a combined $2 billion.

Aegon climbed 3.2 percent. The Netherlands-based insurer said it has maintained a strong balance sheet and liquidity position in these extraordinary times.

Vodafone shares jumped as much as 9 percent. The world’s second-largest mobile operator maintained its dividend payout after meeting full-year expectations with a 2.6 percent rise in core earnings.

Home improvement chain Kingfisher surged 4.6 percent. The company said underlying sales turned positive in the first week of May as more of its stores re-opened from coronavirus lockdowns.

Morrison Supermarkets rallied 3.2 percent as it reported sales growth in the first quarter despite “highly volatile” trading and a worse-than-expected Easter due to the ongoing lockdown in the U.K.

Property developer Land Securities plunged 13 percent after reporting a big annual pretax loss.

Alstom shares soared 5 percent. After reporting a fall in full-year profit, the train maker confirmed its 2022-23 targets of 9 percent adjusted EBIT margin and of a conversion from net income to free cash flow above 80 percent.

Electric utility Engie tumbled 3.4 percent. The company said it has fine-tuned its market rationalization target with a decision to exit over 25 countries by 2021.

ProSiebenSat.1 Media shares soared 14 percent after U.S. private equity house KKR built a 5.2 percent stake in the German broadcaster.

Industrial conglomerate ThyssenKrupp plunged 9 percent. After widening its first-half loss, the company warned losses could surge in the third quarter. It said a fiscal third-quarter operating loss of “€1 billion cannot be ruled out”.

Insurer Allianz lost 2.6 percent after its first-quarter earnings fell 29 percent from last year amid turbulence created by the coronavirus pandemic.

Deutsche Post rallied 3.7 percent. The logistics group said it sees signs that business is normalizing in Europe.

Electric utility E.ON advanced 3 percent after reporting a rise in Q1 net adjusted net income.

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European Shares Inch Higher On China Exports Data

European stocks rose on Thursday as China exports data for April exceeded expectations and bleak U.S. data released overnight prompted calls for more government spending.

European Central Bank Vice President Luis de Guindos called for greater cooperation in fiscal policy from the region’s political leaders to support the recovery.

Stating the euro zone economy is facing a deep recession, he told the European Parliament’s committee on economic and monetary affairs that “it is thus vital that the fiscal response to this crisis is sufficiently forceful, in all parts of the euro area.”

Earlier today, the Bank of England maintained its key interest rate and refrained from unveiling additional quantitative easing, despite the coronavirus pandemic taking its toll on the economy.

The fall in output has been large and consumer spending has declined sharply, but the disruption will be temporary, the bank noted.

Elsewhere, Norway’s central bank has cut its key policy interest rate to a record-low 0.0 percent from 0.25 percent, marking the third rate cut in less than two months.

The pan European Stoxx 600 rose 0.8 percent to 336.91 after declining 0.4 percent on Wednesday.

The German DAX gained over 1 percent, while France’s CAC 40 index and the U.K.’s FTSE 100 were up around 0.8 percent each.

Zalando shares soared 11 percent after the online retailer said it expects
double-digit growth in 2020 on the back of rising consumer demand.

Biopharmaceutical company MorphoSys jumped 12 percent after reaffirming its financial guidance for 2020.

HeidelbergCement declined 1.2 percent after the company warned it expects a
“significant dent” in 2020 profits due subdued construction activity in the wake of the coronavirus pandemic.

Sportswear firm Puma surged 6 percent after its first-quarter sales declined less than analysts had feared.

Air France-KLM shares slumped 4.2 percent. After posting a sharply higher first-quarter loss, the airline said that demand could take “several years” to recover.

British lenders gained ground after a Bank of England report said an emergency “desktop” stress test showed that top banks and building societies can withstand the anticipated economic fallout from the pandemic.

HSBC Holdings rose 1.1 percent, Barclays advanced 1.8 percent and Standard Chartered rallied 3 percent.

Miners climbed after China’s exports saw a surprise 3.5 percent rise in April despite the global impact of the coronavirus pandemic. Anglo American rallied 3.5 percent, Antofagasta rose 1.4 percent and Glencore added 1.3 percent.

Branded clothing company Superdry soared 10 percent. The company said it is exploring financing options regarding additional liquidity.

Rolls Royce Holdings slumped 4.5 percent. The aero-engine maker said it expects to deliver just 250 widebody aircraft engines this year, compared with its previous estimate of 450.

British Airways-owner IAG lost 3.4 percent after saying it tapped U.K. government-backed loans to boost liquidity.

Telecoms group BT plunged 8 percent as it suspended dividend until 2021-22 and pulled its financial outlook.

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European Shares Seen Opening Little Changed

European stocks look set to open on a flat note Tuesday after strong gains the previous day on signs of progress in reopening economies.

The global death toll from the novel virus topped 210,000, according to a tally by Johns Hopkins University. As the U.S. death toll surpassed 55,000, President Donald Trump said that deaths in the country from the virus could reach as high as 70,000.

As some U.S. states and European countries moved gradually to ease their limits on movement and commerce, Brazil, Latin America’s biggest country, is emerging as potentially the next big hot spot for the coronavirus.

President Jair Bolsonaro insists that it is just a “little flu” and that there is no need for the sharp restrictions.

The head of the World Health Organization warned that the new pandemic was far from over and that he was concerned about increasing trends in Africa, eastern Europe, Latin America and some Asian countries.

Consumer confidence survey data from France is due later in the session, headlining a light day for the European economic news.

Across the Atlantic, a report on consumer confidence as well as earnings updates from the likes of 3M, Caterpillar, Merck, PepsiCo, Pfizer, Southwest Airlines and UPS may attract some attention.

U.S. stocks posted strong gains overnight after New York Governor Andrew Cuomo announced plans for a phased reopening of his state’s economy, citing a steady decline in coronavirus hospitalization rates.

Other states, including several led by Republican governors, also moved to reopen their economies.

The Dow Jones Industrial Average rose 1.5 percent, while the tech-heavy Nasdaq Composite gained 1.1 percent and the S&P 500 added 1.5 percent to reach their best closing levels in well over a month.

European markets rallied on Monday as more countries in the continent announced plans to relax lockdown restrictions and the Bank of Japan expanded its monetary stimulus for the second straight month.

The pan European Stoxx 600 gained 1.8 percent. The German DAX jumped 3.1 percent, France’s CAC 40 index surged 2.6 percent and the U.K.’s FTSE 100 advanced 1.6 percent.

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European Shares Poised For Firm Start

European stocks are likely to open higher on Monday as Italy, Spain and France all signaled tentative moves to open up their economies amid a continued slowdown in new virus cases.

Elsewhere, fatalities reported in the U.K. and New York were the lowest since the end of March.

As global death toll soared past 200,000, the World Health Organization has warned against “immunity passports” for recovered patients.

Globally, there are currently 29.94 lakh confirmed cases of coronavirus and 2.06 lakh deaths.

Asian markets inched higher along with U.S. stock futures as the Bank of Japan expanded monetary stimulus for the second straight month in response to the
growing economic devastation from the coronavirus pandemic.

The Federal Reserve and the European Central Bank will meet later in the week, with economists expecting no changes in official interest rates as the rate of new cases and deaths fall in Europe and the United States, the Covid-19 epicenters.

Gold prices eased on firmer equities while oil fell below $16 a barrel on concerns over swelling global crude stockpiles.

U.S. stocks rose sharply on Friday as some states prepared to reopen their economies and oil prices climbed on expectations the U.S. may shrink production to make up for diminished demand and storage capacity.

Offsetting disappointing durable goods orders and consumer sentiment data, President Donald Trump signed a $484 billion stimulus package that will replenish a fund for small-business lending and direct money to hospitals and efforts to ramp up U.S. testing capacity in the fight against Covid-19.

The Dow Jones Industrial Average climbed 1.1 percent, the S&P 500 rallied 1.4 percent and the tech-heavy Nasdaq Composite jumped 1.7 percent.

European markets ended notably lower on Friday as an experimental drug to treat Covid-19 showed inconclusive results and EU leaders failed to reach an agreement over the structure of an economic recovery fund to tackle the impact of the virus pandemic.

The pan European Stoxx 600 shed 1.1 percent. The German DAX declined 1.7 percent, while France’s CAC 40 index and the U.K.’s FTSE 100 dropped around 1.3 percent.

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European Shares Mixed Before EU Meeting

European stocks recovered from an early slide on Thursday even as the latest PMI readings showed that Europe is enduring a historic collapse in economic activity.

Energy stocks rose broadly as oil prices continued to rebound on the prospect of fresh U.S.-Iran tensions.

Tensions between Washington and Tehran flared a new Wednesday after Iran’s Revolutionary Guard conducted a space launch that could advance the country’s long-range missile program.

U.S. President Donald Trump last night threatened to engage Iranian vessels that “harassed” U.S. navy vessels in the Strait of Hormuz.

The U.S. Congress looked on course to approve nearly $500 billion more in aid to help small businesses, while European Union leaders will make another attempt to agree on a shared fiscal response to a recession looming as a result of the coronavirus pandemic.

The pan European Stoxx 600 edged up 0.2 percent to 330.69. France’s CAC 40 index gained 0.3 percent, while the U.K.’s FTSE 100 was marginally lower and the German DAX was down about 0.2 percent.

Groupe Renault advanced 2 percent despite reporting a 19 percent fall in first-quarter revenue.

Rexel, a distributor of electrical supplies, soared 7.7 percent after reporting a marginal fall in sales for the first quarter of 2020.

Wirecard shares jumped 8 percent. The payments company said auditing firm KPMG did not find any manipulation in its audit of the company’s operations in India, Singapore, Third Party Partner Business, Merchant Cash Advance and Digital Lending divisions.

Automaker Daimler rose over 1 percent. The company reported a fall in Q1 preliminary EBIT and said it expects total unit sales and revenue for 2020 to be lower compared to last year.

Software AG gained 2 percent. The enterprise software company expects to deliver a solid performance in the first half of 2020, but sees limited visibility in the second half of the year. The company has confirmed its 2023 ambitions.

Energy stocks were moving higher as oil prices rebounded on signs of production cuts. Total SA climbed 3.4 percent, BP Plc rallied 2.3 percent and Royal Dutch Shell advanced 2.7 percent.

Tullow Oil jumped as much as 26 percent after it agreed to transfer its entire interests in Blocks 1, 1A, 2 and 3A in Uganda and the proposed East African Crude Oil Pipeline System to Total Uganda for cash consideration of $575 million plus potential contingent payments after first oil.

Mining giant Anglo American advanced 1.8 percent after reducing its FY20 capex guidance.

SKF, the world’s biggest maker of ball bearings, surged 6.6 percent after reporting solid first-quarter operating earnings.

Consumer goods company Unilever declined 1.8 percent after withdrawing is 2020 guidance.

Swiss banking major Credit Suisse Group lost 2 percent as it warned of impairments in the coming quarters.

In economic releases, German consumer confidence is set to reach a historic low in May due to the coronavirus pandemic and the control measures taken to curb the virus, survey results from the market research group GfK showed.

The forward-looking consumer sentiment index fell to -23.4 in May from revised 2.3 points in April. The survey was conducted in the first two weeks of April, when consumers started feeling the full impact of the containment measures.

The euro area private sector suffered its steepest falls in business activity and employment due to the measures taken to contain the spread of coronavirus, flash survey data from IHS Markit showed.

The flash IHS Markit composite output index plummeted to an all-time low of 13.5 in April, down from a prior record low of 29.7 in March.

This was the largest monthly collapse in output recorded in over two decades of survey data collection.

The services Purchasing Managers’ Index plunged to a record low 11.7 from 26.4 in March, while the manufacturing PMI came in at 33.6, down from 44.5 in the previous month.

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European Shares Mixed In Cautious Trade

European stocks were mixed on Monday as investors took some profits after strong gains in the previous session.

Signs of a slowdown in coronavirus infection rates as well as hopes of more economic stimulus to shore up global growth helped to limit the downside to some extent.

Meanwhile, the euro area trade surplus increased in February as exports increased from January amid a fall in imports, first estimate from Eurostat showed.

The trade surplus rose to a seasonally adjusted EUR 25.8 billion in February from EUR 18.2 billion in January.

The euro area current account surplus rose to EUR 40 billion in February from EUR 32 billion in January, the European Central Bank reported.

The pan European Stoxx 600 was up 0.25 percent at 334.30 after climbing 2.6 percent on Friday. The German DAX was rising 0.3 percent, while France’s CAC 40 index and the U.K.’s FTSE 100 were marginally lower, giving up early gains.

Aston Martin shares jumped 5 percent in London. The company’s new chairman Lawrence Stroll said immediate priorities will be to restart manufacturing and launch production of its crucial first SUV.

Total SA gave up 1.7 percent and Tullow Oil fell as much as 5 percent as New York oil collapsed below $15 a barrel to hit the lowest level in more than two decades.

Homebuilder Redrow tumbled over 3 percent. The company said that John Tutte has agreed to delay the step back to non-executive Chairman from 30th June until the company’s AGM in November 2020.

Premier Foods shares soared 16 percent. The company said it expects to report trading profit for the 52 weeks ended 28 March 2020 at the top end of market expectations.

French mass media conglomerate Vivendi rallied 4 percent. The company reported that its total revenue for the first quarter increased 11.9 percent to 3.87 billion euros from last year’s 3.46 billion euros.

German hospital operator Rhoen-Klinikum edged up about half a percent. The company said its shareholder Asklepios had rejected the demands by B. Braun to the increase of the majority requirement and make an advance dividend payment.

Koninklijke Philips NV surged 7 percent after its first-quarter comparable order intake grew 23 percent, led by diagnostic imaging, patient monitors and ventilators.

Swiss drug major Novartis gained about 1 percent. The company said it has reached an agreement with the U.S. Food and Drug Administration to proceed with a Phase III clinical trial of hydroxychloroquine in hospitalized patients with Covid-19 disease.

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European Shares Set To Open On Cautious Note

European stocks are likely to open lower on Friday as the number of confirmed coronavirus cases crossed the 1 million mark globally with a death toll of 53,030, according to the new tally from Johns Hopkins University.

Around 1,015,403 people have been diagnosed with the novel coronavirus across the world.

The U.S. has the highest number of infection cases, at 245,213, along with 5,983 deaths. Italy has the most deaths, more than 13,900, followed by Spain.

Fears are growing that virus-led economic disruptions could be far more punishing and long lasting than initially thought.

As coronavirus crisis escalates, Fitch Ratings expects a deep global recession this year, with the fall in 2020 GDP on par with the global financial crisis.

According to the latest update of its Global Economic Outlook, World economic activity will decline 1.9 percent in 2020.

The rating agency expects US GDP to fall by 3.3 percent, the euro area by 4.2 percent and the UK to drop 3.9 percent this year.

China’s recovery from the disruption in the first quarter of 2020 will be sharply curtailed by the global recession and annual growth will be below 2 percent, Fitch noted.

The U.S. recession is here and how quickly the country will bounce back will depend upon the course of the viral pandemic, the extent of support the federal government provides and how effectively it may be used to stem millions of job losses, Fed officials said Thursday.

Asian markets are trading mixed after Wall Street gained for the first time in three days led by beaten-down energy stocks.

Oil prices retreated after notching their biggest one-day surge on record amid hopes the price war between Saudi Arabia and Russia would end soon.

U.S. President Donald Trump tweeted later in the day that he expects a sharp 15 million barrels output cut from Russia and Saudi Arabia.

The dollar rose for a second straight session while gold hovered near the $1600 mark after another large jump in first-time jobless claims in the U.S.

In economic releases, China’s services activity contracted in March, albeit at a slower pace, as the sector faces challenging conditions in March amid the Covid-19 outbreak, survey data from IHS Markit showed.

The Caixin services Purchasing Managers’ Index rose to 43.0 from 26.5 in February. The composite output index advanced to 46.7 in March from 27.5 a month ago. This was the second-lowest score in eleven years.

Final composite Purchasing Managers’ survey data and retail sales figures from euro area are due later in the session, headlining a busy day for the European economic news.

The U.S. Labor Department is scheduled to release its usually closely-watched monthly employment report later today, although the data may be seen as old news as the employment survey was conducted three weeks ago.

Economists expect the report to show employment fell by 100,000 jobs in March after an increase of 273,000 jobs in February. The unemployment rate is expected to climb to 3.8 percent from 3.5 percent.

U.S. stocks rose sharply overnight as investors reacted to news about rising
coronavirus cases, record jobless claims in the U.S., and a whopping rise in crude oil prices amid reports suggesting a likely end to the price war in the oil market.

The Dow Jones Industrial Average rallied 2.2 percent, the tech-heavy Nasdaq Composite surged 1.7 percent and the S&P 500 added 2.3 percent.

European stocks ended higher on Thursday after a late-session rally in the energy sector.

The pan European Stoxx 600 added 0.4 percent. The German DAX and France’s CAC 40 index both edged up about 0.3 percent, while the U.K.’s FTSE 100 gained half a percent.

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European Shares Rise On Optimism Over US Stimulus

European shares rose further on Wednesday after posting their biggest one-day gain since late 2008 the previous day.

Investor sentiment was boosted after U.S. lawmakers and the Trump administration reached an agreement on a sweeping $2tn stimulus package designed to curb the economic fallout of the coronavirus pandemic.

The pan European Stoxx 600 was up 4.1 percent at 316.55 after surging as much as 8.4 percent in the previous session.

The German DAX rallied 3.8 percent, France’s CAC 40 index jumped 4.4 percent and the U.K.’s FTSE 100 was up 2.8 percent.

Equinor surged 5.6 percent after it announced an approximately $3 billion action plan to strengthen financial resilience amid the COVID-19 impact and lower commodity prices.

Credit Suisse Group soared 10 percent. The Swiss lender said that profitability in the first quarter of 2020 has so far continued the strong year-on-year improvement trend, despite the COVID-19 pandemic and the resultant volatile market environment.

Miners rose across the board after mainland China reported a drop in new imported coronavirus cases. Anglo American, Antofagasta and Glencore surged 5-6 percent.

Shares of Centamin rallied 2.5 percent. The company announced that as of March 24, the company has experienced no material disruption to operations, supply chain or gold shipments due to the coronavirus or COVID-19 pandemic.

Pest control firm Rentokil Initial slumped 10 percent. The company withdrew its fiscal 2020 guidance due to the impact of COVID-19 or Coronavirus.

Housebuilder Persimmon surged 8.2 percent after saying that its board remains confident of the Group’s future prospects.

Renault shares gained 4.8 percent. The automaker said it had suspended its production activities at industrial sites in Latin America until further notice.

Capgemini added 4 percent. The provider of consulting, technology services and digital transformation has signed an agreement to acquire WhiteSky Labs, an independent MuleSoft full-service consultancy, with operations across Australia and Asia.

Construction group Eiffage jumped nearly 16 percent after it was chosen as concession operator of the future A79 motorway in France.

Electric utility E. ON soared 11 percent. The company said that its management board, with the approval of the supervisory board, has adopted a dividend policy with an annual growth rate of up to 5 percent.

Industrial and technology group ThyssenKrupp jumped 15 percent. The company said it would reduce up to 2,000 jobs in the next 3 years, and roughly another 1,000 jobs by 2026.

United Utilities Group advanced 3.3 percent. The company said its current trading is in line with the group’s expectations for the year ending 31 March 2020.

In economic releases, German business sentiment logged its steepest fall ever recorded since German reunification, as the spread of coronavirus weighed on economic activity, final survey data from ifo Institute showed.

The business confidence index fell to 86.1 in March from 96.0 in February. This was the biggest fall since German reunification and reached its lowest level since July 2009. The preliminary reading for March was 87.7.

U.K. consumer prices advanced 1.7 percent from last year in February, as expected, after gaining 1.8 percent in January, data from the Office for National Statistics showed.

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