European stocks hit five-month low as traders wait for ECB, US GDP and wave of earnings


German Chancellor Angela Merkel wears a face mask as she leaves after a press conference on new coronavirus restrictions following consultations with the prime ministers of Germany’s 16 federal states at Chancellery in Berlin on October 28, 2020.

fabrizio bensch / Agence France-Presse / Getty Images

European stocks stabilized on Thursday after closing the previous session at a five-month low as investors await the latest decision from the European Central Bank, a flood of corporate profits and a read on the performance of the world’s largest economy. world in the third quarter.

Down 3% on Wednesday, the Stoxx Europe 600 SXXP,
+ 0,48%
increased by 0.3%.

The German DAX DAX,
+ 0,66%
increased by 0.5%, and the French CAC 40 PX1,
+ 0,38%
et UK FTSE 100 UKX,
+ 0,22%
also increased slightly.

YM00 U.S. Equity Futures,
+ 0,51%

+ 0,95%
climbed past huge gains – including tech giants Alphabet GOOG,
Apple AAPL,
et Facebook FB,
after the closing bell. US GDP is expected to post an annualized jump of 33% in the third quarter.

France and Germany separately announced new month-long lockdowns on Wednesday to tackle the second wave of the COVID-19 pandemic. Berenberg economists say the French economy could contract as much as 4% in the fourth quarter and the German economy could shrink by 1%.

“In Germany these restrictions are probably less severe than they could have been and probably seem more extreme than they are, but the direction of travel is not going in the right direction with maybe 5 months peak flu / cold / virus season that awaits us. unlike the first wave where we only had about a month of normal peak time left when it hit, ”said Jim Reid, a Deutsche Bank strategist.

Customers watch French President Emmanuel Macron’s evening televised address to the nation at a café in Bordeaux, southern France, October 28, 2020, to announce new measures to curb the spread of the Covid pandemic. 19.

philippe lopez / Agence France-Presse / Getty Images

The European Central Bank is meeting on Thursday, with expectations the central bank will suggest it is open to more stimulus, but wait until December to deliver it.

Royal Dutch Shell RDSA,
+ 2,11%

jumped 4%, as the oil giant’s adjusted profit of $ 955 million was well above expectations of $ 146 million.

Nokia NOKIA,

fell 13% as the telecommunications equipment maker slashed its profit forecast and introduced a new structure.

BT Group BT.A,
+ 5,85%
climbed 6% as UK telecoms lowered their earnings forecast.


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