Europe: European stock markets concerned about uncertainties

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

Seth Statnick

Reporter Seth Statnick was born and raised in California but moved east when he was 25. Apart from running his own consulting firm. Seth spends his time rowing. As a financial journalist Seth has published stories for NPR Business Online, as well as Buzz Feed and Motherboard. As a contributor to The Ticker Times, Seth mostly covers markets and trade. Tel: 206-332-0220 Location: 1304 6th Ave, Seattle, WA 98104, USA Email: [email protected]

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