Coronavirus concerns offset vaccine optimism to put pressure on European stocks and Dow futures


BERLIN, GERMANY – NOVEMBER 11: People sit in a closed restaurant except for take out under a four-week semi-lockdown during the second wave of the coronavirus pandemic on November 11, 2020 in Berlin, Germany.

Sean Gallup / Getty Images

European stocks weakened on Thursday, as concerns about the impact of rising coronavirus cases on economic growth raised optimism about the progress of a potential vaccine.

Up 6% over the first three days of the week, the Stoxx Europe 600 SXXP,
down 0.6%, with banks including HSBC Holdings HSBA,
and BNP Paribas
in decline.

The German DAX DAX,
French CAC 40 PX1,
et UK FTSE 100 UKX,
each recorded moderate losses.

Futures sur le Dow Jones Industrial Average YM00,
dropped 169 points after a slight drop of 23 points for DJIA blue chips,

The coronavirus situation in the United States is worsening, with the country setting another record for confirmed cases on Wednesday. Christophe Barraud, chief economist and strategist at Market Securities in Paris and multiple winner of the MarketWatch forecasting competition, pointed out that small business data that is data available shows a gap in US activity between northern states in cooler climates and southern states in warmer climates. .

He expects more states to join New Jersey and Wisconsin in implementing new restrictions as hospitalizations are expected to increase given the relationship to cases. “Therefore, in a context where the economic recovery has already lost momentum, the drastic restrictions to come will probably cause a further contraction of the GDP as early as the fourth quarter,” he said.

After lockdowns across Europe, the growth of cases on the continent has fallen but remains high, according to data from the European Center for Disease Prevention and Control. Data from the UK showed GDP recovered to a slightly lower than forecast level of 15.5% in the third quarter and 1.1% in September. Samuel Tombs, UK chief economist at Pantheon Macroeconomics, said GDP was likely no higher in October than in September and will fall in November due to the new lockdowns.

Stocks on the move, the German conglomerate Siemens SIE,
fell 5% after reporting fourth-quarter tax profit slightly above estimates of a 3% drop in revenue and trending towards “moderate” profit and sales growth this year.

Legal and general LGEN,
fell 3% as the UK insurer said its operating profit this year would be broadly in line with last year.

Burberry BRBY Group,
+ 3,87%
rose 4% as the luxury retailer said comparable sales had not fallen as much as expected in its first half ending September 30. Burberry said it was “encouraged” by its October sales outside of the 10% of stores closed due to COVID-19 restrictions.


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