European stocks drop for third consecutive session and US equity futures drop as stimulus watch continues

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European stocks fell on Wednesday as earnings news was overshadowed by investor concerns over the spread of the COVID-19 pandemic in the region and the progress of the U.S. stimulus, Wall’s equity futures. Street also slipping into the red.

On the way to a third consecutive losing session, the Stoxx Europe 600 SXXP index,
-0,64%
fell almost 1%, after falling 0.4% on Tuesday. The German DAX DAX,
-0,65%
also fell by 1%, while the French CAC 40 PX1,
-0,80%
was down just over 1%, and the FTSE 100 UKX,
-1,00%
fell 1.2%. CL00 oil price,
-1,53%
were down more than 1%.ES00 US equity futures contracts,
+ 0,07%

YM00,
-0,02%
shot lower, with Nasdaq-100 NQ00 futures,
+ 0,17%
The prominent drops after streaming Netflix NFLX video group
-0,99%
disappointed on Tuesday evening, as stocks fell in pre-market.

Wall Street shares closed on Tuesday, but outside of session highs, as investors watched progress on a new round of fiscal stimulus to tackle the economic fallout from the pandemic.

White House officials and House Speaker Nancy Pelosi said enough progress was made on Tuesday to warrant further talks on Wednesday, with the aim of getting a package passed ahead of the November 3 election.

But a greater risk to a deal may come from Republicans in the Senate. The Washington Post also reported that Senate Majority Leader Mitch McConnell told fellow Republicans at a lunch on Tuesday that he advised the White House against a pre-election deal.

“If Republican Senate Leader Mitch McConnell refuses to introduce a bill, then the stimulus is dead in the water until the end of the US election,” Jeffrey Halley, senior market analyst, Oanda, said in a statement. note to customers.

“More than two months and a lifetime in the larger framework of 2020,” he said. “The financial markets blithely ignore this very real and obvious risk …”

The rise in coronavirus cases on both sides of the Atlantic continued to weigh on investors. In Spain, officials are considering a nationwide curfew, which would echo efforts seen in other European countries battling waves of fall infection.

Lis: Manchester lockdown rebellion fails as Boris Johnson forces region to impose tighter COVID restrictions

New concern about a second wave has been expressed by the President of the European Central Bank, Christine Lagarde.

“I think most scientists and different scientific bodies expected the virus to take off again in November and December, alongside the cold weather with factors that had nothing to do with the virus,” said The guard in pre-recorded comments published Tuesday, for an interview with the French news channel LCI.

“But it happened earlier and from that point of view it was a surprise and of course that doesn’t bode well,” she said.

Data showed annual inflation in the UK rose 0.5% in September, down from 0.2% in August, the Office for National Statistics said. Higher transportation costs and higher prices at restaurants contributed to this increase, after the government’s Eat Out to Help Out program ended, which reduced the price of meals.

The pound jumped 0.8% to $ 1.3049 after EU chief negotiator Michel Barnier said a trade deal with the UK was “within reach” if the both sides could work hard to overcome the “sticking points” in the coming days.

Investors were also absorbing a new crop of income.

Actions de LM Ericsson ERIC,
+ 1,73%

ERIC,
+ 1,73%
jumped 8%, after the Swedish telecommunications equipment maker backed its group goals for the full year and reported stronger-than-expected profits. Ericsson has seen limited impact of COVID-19 and increased demand for 5G.

Randstad RAND,
+ 6,77%
shares climbed 8%, after the Dutch recruiting firm said third-quarter net profit fell, but revenues partially recovered after a pandemic. The company said volumes for early October pointed to further positive momentum.

Nestle
NESN,
-0,37%

NSRGY,
+ 0,35%
reported lower sales for the first nine months of the year, but raised guidance for the full year as demand for the Swiss grocery giant’s home products remained strong. Nestlé shares rose 1%.

Actions de Centamin CEY,
-19,60%
plunged 12%, after the miner listed in London and Toronto reported lower gold production and sales for the third quarter.



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