Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your experience. Save up to 40% More details

European Stocks Edge Higher; Airbus Issues Jobs Warning

Stock Markets Sep 22, 2020 03:48AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
© Reuters.

By Peter Nurse - European stock markets rebounded Tuesday after the previous session’s sharp losses. However, the overall tone remains weak amid concerns that the region’s recovery will be derailed by fresh lockdowns.

At 3:50 AM ET (0750 GMT), the DAX in Germany traded 0.8% higher, the CAC 40 in France rose 0.3% and the U.K.'s FTSE index was up 0.6%. These three benchmark cash indexes all dropped over 3% on Monday, their biggest one-day losses in over three months.

A fresh Covid-19 outbreak in Europe is increasing fears of more new lockdowns on the continent. 

British Prime Minister Boris Johnson is set to tell the public later Tuesday to work from home and will impose new curbs on pubs, bars and restaurants in a bid to tackle the swelling second wave of the coronavirus outbreak.

A number of European countries, including France, Spain and Greece, have already implemented new restrictive measures. 

In corporate news, Airbus (PA:AIR) stock fell 1.4% after CEO Guillaume Faury said that he couldn’t guarantee that the European planemaker wouldn’t have to resort to compulsory redundancies to cut costs. Airbus has said it needs to shed 15,000 posts worldwide.

Whitbread (LON:WTB), which owns the Premier Inn hotel and Beefeater restaurant chains, fell 2.4% after warning that 6,000 staff could lose their jobs given fewer guests since the coronavirus lockdown.

On the flip side, drinks producer A.G.Barr (LON:BAG) rose 7.4% after reporting a profit for the difficult first half of the year, admittedly sharply lower than the previous year, adding that dividend payments are expected to be resumed next year.

Later on, investors are likely to concentrate on U.S. Federal Reserve Chair Jerome Powell, as he makes the first of three appearances on Capitol Hill this week to discuss the central bank’s response to the coronavirus pandemic. 

Powell is set to reiterate the Federal Reserve remains committed to maintaining loose monetary policy measures as the outlook remains uncertain.

Oil prices drifted Tuesday, with Tropical Storm Beta proving less disruptive to the infrastructure in the Gulf of Mexico than feared. However, persistent worries about fuel demand as coronavirus cases continue to flare up around the globe remain a drag.

Traders will be watching out for the American Petroleum Institute's data on U.S. oil inventories due later on Tuesday.

U.S. crude futures traded 0.2% higher at $39.62 a barrel, while the international benchmark Brent contract rose 0.2% to $41.52. Both oil benchmarks fell around 4% on Monday.

Elsewhere, gold futures rose 0.3% to $1,904.45/oz, while EUR/USD traded 0.4% lower at 1.1727.


European Stocks Edge Higher; Airbus Issues Jobs Warning

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
Continue with Google
Sign up with Email