PARIS (awp / dpa) – European stock markets continued their decline on Friday, the resurgence of the coronavirus pandemic mixed with other health and economic uncertainties favoring profit-taking.
The gloom spread to all European markets: the CAC 40 dropped 1.22%, London 0.71%, and Frankfurt 0.70%. Wall Street was also moving in the red at the close of the markets of the Old Continent.
“It’s a gloomy weekend for European markets,” said Michael Hewson, an analyst for CMC Markets.
“Investors are struggling to keep risks open all weekend, knowing that there is still uncertainty over a new US stimulus plan still under discussion,” observes Laurent Le Grin, CEO at Degroofpetercam.
While the US consumer confidence index rose more than expected in September, retail sales growth slowed markedly in August in the United States, underlines the specialist.
Investors also lacked support after the mixed message the day before from the American Central Bank (Fed), which promised an interest rate policy close to zero for a long time but underlined the “uncertainty” of the recovery, lowering its growth forecasts for 2021 and 2022.
The wave of infections in Europe and the fact that the British government does not rule out resorting to a new general containment for all of England “also alarms investors,” notes Mr. Le Grin.
The geopolitical risk also weighed with the announcement by Washington of the ban, from Sunday, the downloading of Chinese applications TikTok and WeChat.
The tone on the sovereign debt market, where rates have moved little and remain at very low levels, reflected unsuccessful expectations for the economy.
The tourism sector is suffering
These values would be particularly penalized in the event of new restrictions, which would dampen the hopes of a rapid recovery in the sector a little more and while demand is weaker than expected in air transport. In London, IAG, owner of the airline British Airways, lost 14.60% to 110.55 pence, and the hotel group InterContinental Hotels 4.48% to 4,137.00 pence. Air France-KLM lost 1.93% to 3.66 euros and Accor 2.77% to 23.89 euros.
Online commerce takes its toll
The property Unibail-Rodamco-Westfield continued its fall (-10.53% to 32.20 euros) to reach a low that dates back 20 years, suffering the full brunt of the decline of consumers to online purchases. Carrefour also finished in the red (-2.89% to 13.43 euros).
Conversely, online consumer stocks behaved well, whether German Zalando (+ 2.79% to 77.46 euros) or in London, Ocado (+ 3.87% to 2.817 pence).
Euronext and LSE at the party
The London Stock Exchange (+ 1.33% to 8.960.00 pence) announced on Friday that it had entered into “exclusive discussions” with Euronext (+ 4.28% to 102.30 euros) to sell it the Milan Stock Exchange, which would be one of the best catches for the European stock exchange operator.
The indices in brief
Paris – CAC 40: -1.22% at 4,978.18 points
Frankfurt – Dax: -0.70% to 13,116.25 points
London – FTSE 100: -0.71% to 6,007.05 points
Milan – FTSE MIB: -1.09% to 19.524.94 points
Lisbon – PSI 20: -0.80% to 4,252.43 points
Zurich – SMI: + 0.19% to 10,539.17 points
Madrid – IBEX 35: -2.21% to 6,929.80 points
Amsterdam – AEX: -1.63% to 550.85 points
Brussels – Bel 20: -0.42% to 3.390.18 points