Breaking News
Ad-Free Version. Upgrade your experience. Save up to 40% More details

European shares bounce back, focus shifts to ECB meeting

EconomySep 09, 2020 12:25PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
© Reuters. The German share price index DAX graph at the stock exchange in Frankfurt

By Shreyashi Sanyal

(Reuters) - European shares bounced back on Wednesday, on the eve of the European Central Bank's policy meeting, as AstraZeneca (NYSE:AZN) reversed declines after a report that it may resume its COVID-19 vaccine trial next week.

AstraZeneca Plc (L:AZN) had to pause global trials of its experimental vaccine after an unexplained illness in a participant. But its shares rebounded from small declines earlier in the session to inch 0.5% higher after the Financial Times report.

"Given how brash the markets have been around any vaccine updates, this understanding that delays in the process aren't necessarily cause for concern is a surprising acknowledgement of nuance," said Connor Campbell, financial analyst at spread better Spreadex.

The pan-European STOXX 600 index (STOXX) rose 1.6%, with telecoms (SXKP), insurers (SXIP) and technology stocks (SX8P) leading sectoral advances.

Travel and leisure stocks (SXTP) were the laggards with a 0.9% fall.

The British airline easyJet (L:EZJ) fell 2.1%, a day after reducing its flying schedule as frequent changes in government travel restrictions hit demand.

Fellow airlines Ryanair (I:RYA) and IAG (L:ICAG) and cruise operator Carnival (L:CCL) fell between 3.5% and 6%.

The plane manufacturer Airbus (PA:AIR) fell 2% after deliveries slipped in August, slowing its recovery from a meltdown in demand induced by the coronavirus.

The STOXX 600 index has been stuck in a tight range since June, but investors are looking to Thursday's ECB policy meeting as a possible catalyst.

Analysts are not expecting any changes in rate policy, focusing instead on the central bank's inflation outlook and commentary on the euro's recent strength.

"We believe the ECB will try to address the downside risks to inflation and recent euro appreciation through words rather than actions at this point," wrote analysts at TD Securities.

Investors were following developments around Britain's plan for life outside the European Union's single market from Jan. 1 as the UK published legislation that it acknowledged would break a binding agreement with the EU, casting a dark shadow over the latest round of talks on a free trade agreement.

Expectations for third-quarter STOXX 600 earnings have worsened, according to the latest data from Refinitiv.

Profits are now expected to fall 39.2% for the 600 companies listed on the pan-European index, against an expectation of 37.9% a week ago.

European shares bounce back, focus shifts to ECB meeting

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email