On Wednesday, stocks of Europe fell for a third-straight session. Also, United States equity was sliding. It is because investors braced for more limitations to come from rising coronavirus cases on the continent, and they juggled another busy earnings day.
The Stoxx Europe 600 index decreased by 2.3%. It happened after closing nearly one percent lower on Tuesday. The German DAX dropped three percent, the French CAC 40 declined over three percent, and the FTSE 100 decreased by 2.1%.
Also, Wall Street was pointing to more losses. Dow Futures are down by over four hundred points. On Tuesday, stocks finished mostly lower. It was the day after their worst decline in a month. Abandoned hopes for a pre-election stimulus plan and rising COVID-19 cases hit investors. Next week comes to the United States presidential election.
Emmanuel Macron is the French President. On Wednesday, in a televised address he might announce new restrictions. It is because cases climb in that country. That is what tabloid newspaper BILD reported.
Stephen Innes works for AXI. He is chief global markets strategist there. He said in a note to clients that it is unlikely that the continent will lockdown. Economic juggernauts Germany and France are struggling to contain the virus. It is hard to envision anything. Nevertheless, the eurozone in general, and both economies are struggling into 2021 or until a vaccine will become available.
Governments have been scrambling with new measures for containing pandemic. So, in Italy there are protests. Reportedly, their government prepares a relief package for businesses affected by new containment moves.
On Thursday, the Central Bank of Europe will meet. Nevertheless, economists do not forecast any stimulus moves until the December meeting.
A big week for earnings continued both sides of the Atlantic. Late Tuesday, Tech giant Microsoft topped revenues and sales forecasts. Nevertheless, its outlook disappointed. Boeing and Multinational conglomerates GE and other big names will report on Wednesday.
Banks led the way south in Europe. The German lender posted forecast-beating results. They were lifted by a strong performance for its investment bank. After that, the shares of Deutsche Bank dropped 2.5%.
Andrew Coombs is leading a team of Citi analysts. So, the group said that there is a good set of results. Nevertheless, an accompanying outlook statement suggests little chance to consensus earnings per share (EPS). They remain sellers. It is because they believe the investment bank (IB) industry backdrop is unlikely to be as supportive for Deutsche Bank in 2021.
- Trading Instrument