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

Stocks - Europe Edges Lower After German Stimulus Deal; ECB in Focus

Stock MarketsJun 04, 2020 03:56AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

By Peter Nurse 

Investing.com - European stock markets sold off Thursday, consolidating after recent strong gains ahead of the latest meeting of the European Central Bank.

At 3:55 AM ET (0705 GMT), the DAX in Germany traded 0.4% lower, France's CAC 40 fell 0.2%, while the U.K.'s FTSE index was down 0.2%. 

Stock markets have been on a roll of late, fueled by investor optimism over the global economic recovery from the coronavirus outbreak amid record stimulus measures from governments and central banks. 

Late Wednesday the German government announced its second stimulus package since the start of the pandemic. The new package includes a temporary cut in VAT and one-off handouts for parents of children but does not include direct aid for the car industry, except in the form of grants for smaller electric vehicles and charging stations.

This has prompted some selling in the German autos sector Thursday, with Daimler (DE:DAIGn) down almost 4%, while Volkswagen (DE:VOWG_p) and BMW (DE:BMWG) dropped over 2%.

Attention will turn to the European Central Bank meeting later Thursday, with the central bank widely expected to ramp up its stimulative bond purchases to support the region’s battered economies.

The ECB will also publish its new economic forecasts. Data this week suggest the economy may already have bottomed but risks to the recovery remain in the form of a second wave of Covid-19 infections and Sino-U.S. tension that may lead to another damaging trade war.

The ECB delivers its policy decision at 1145 GMT and ECB President Christine Lagarde holds a news conference at 1230 GMT.

In corporate news, French spirits company Remy Cointreau (PA:RCOP) gained over 6% after saying it expected a strong recovery in the second half of the year, despite seeing operating profit falling by 45-50% in the first half of its 2020/21 fiscal year.

HSBC (LON:HSBA) dropped 0.9% and Standard Chartered (LON:STAN) fell 0.4% after the two Asia-focused U.K. banks backed China's imposition of a national security law on Hong Kong, placing them on collision course with the U.K. government.

Oil prices slipped lower Thursday on concerns that major producers will be unable to agree to extend the record level of output cuts that have supported the recent gains.

Also weighing on prices was the release of the Energy Information Administration data late Wednesday, which showed gasoline and distillate stocks rising by much more than expected.

At 3:55 AM ET, U.S. crude futures traded 1.7% lower at $36.64 a barrel. The international benchmark Brent contract fell 1.4% to $39.24.

Elsewhere, gold futures were flat at $1,705.10/oz, while EUR/USD traded at 1.1201, down 0.3%.

 

Stocks - Europe Edges Lower After German Stimulus Deal; ECB in Focus
 

Related Articles

Wall Street ends mixed, Tesla falls
Wall Street ends mixed, Tesla falls By Reuters - May 20, 2022 10

By Amruta Khandekar and Noel Randewich (Reuters) - Wall Street ended mixed on Friday after a volatile session that saw Tesla (NASDAQ:TSLA) slump and other growth stocks also lose...

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 Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
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?
 
Post
 
Replace the attached chart with a new chart ?
1000
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 Investing.com'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
or
Sign up with Email