European Stocks, United States, and second wave of COVID

Let us check European stocks and the United States. On Monday, European stocks traded lower. There was a profit warning from business software giant SAP. Furthermore, there are difficulties in United States stimulus talks and new restrictions on activity in response to COVID-19.

The Stoxx Europe 600 decreased by 1.2%, down 1.4% last week.

The German DAX skidded 2.7% after the SAP warning. The United Kingdom FTSE 100 lost 0.6%, and the French CAC 40 decreased by 1.2%.

The Dow Jones Industrial Average Futures skidded 285 points. Last week, the S&P 500 decreased by 0.5%.

To fight a second save of the coronavirus, further restrictions on activity were introduced in Europe. Italy from Monday will close restaurants and bars by six p.m. and shut gyms and cinemas altogether. Meanwhile, Spain is introducing an eleven-year p.m. curfew. Tedros Adhanom Ghebreyesus is WHO (World Health Organization) Director-General. He said that northern hemisphere countries face a ‘dangerous moment’.

Mark Meadows and Nancy Pelosi are House Speaker and White House chief, respectively. On Sunday, they accused each other of moving the goalposts in stimulus talks. They had separate interviews with CNN.

Also, investors in Europe are positioning ahead of talks between the United Kingdom and the European Union on a post-Brexit trade deal. Thus, this week there will be a European Central Bank meeting and next week is coming United States elections.

The United States and European Stocks

The United States dollar broke through eight Turkish lire, also of note. That is another indicator of the economic struggles Turkey is facing.

SAP dropped twenty percent. It is the worst single-day performance losing twenty-three percent in 1996, October 23.  The German business software giant revised down its 2020 outlook. The German business software giant said that the impact of COVID-19 has been to push back customer investments between 1 and 2 years. SAP said its 2023 operating margin would be up to five percent points lower than it previously targeted.

TeamViewer is a maker of remote software. Moreover, IT consultant Capgemini dropped after the SAP warning.

After offering $10.8 billion, Coca-Cola European Partners increased one percent, or 5.2 billion euros. For Coca-Cola Amatil, one of the largest distributors and bottles of alcoholic and non-alcoholic beverages and coffee in the Asia Pacific region. The Coca-Cola Co. tentatively agreed to sell its thirty-one percent stake. Coca-Cola European Bottlers separately said that third-quarter adjusted revenue fell three percent.

Bayer said that it would pay up to four billion dollars for Asklepios Biopharmaceutical. Thus, it slipped one percent after it. Asklepios BioPharmaceutical is a United States-headquartered biopharmaceutical company specializing in gene therapies.

That is situation of the stocks and the United States.