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

Stocks - Europe Pushes Higher; Central Banks and Reopenings Eyed

Stock MarketsApr 27, 2020 04:09AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
© Reuters.

By Peter Nurse - European stock markets posted strong gains Monday, with investors boosted by the news of more central bank largesse and of major economies taking steps towards reopening as the Covid-19 pandemic eases. Standard & Poor's decision not to downgrade Italy after the close on Friday is also helping.

At 4 AM ET (0800 GMT), the U.K.'s FTSE index traded 1.7% higher, France's CAC 40 was up 2.1%, while the DAX rose 2.4%. The broader based Stoxx 600 Europe index climbed 1.8%. 

Earlier Monday the Bank of Japan kicked off a week of central bank action by lifting the cap on its purchases of Japanese government bonds and boosting its purchases of commercial paper and bank loans.

The U.S. Federal Reserve finishes its two-day meeting on Wednesday while the European Central Bank meets on Thursday. Expectations are running hot that these institutions could offer up more stimulus to support economies hit by social distancing measures.

Over the weekend, global virus numbers continued to paint a broadly encouraging picture, with new infection numbers, deaths and hospitalization figures all moving lower, and high-profile victims such as Italy and Spain mapping out paths to reopening their economies. 

In corporate news, shares in Deutsche Bank (DE:DBKGn) soared over 11% after Germany’s largest bank said it would beat first-quarter earnings estimates with a first-quarter profit of 66 million euros, despite taking a provision for loan losses of around 500 million euros.

Volkswagen (DE:VOWG_p) shares climbed over 3% after the world's largest carmaker by sales said Monday it had resumed work at its biggest factory in Wolfsburg.

Additionally, shares of Lufthansa (DE:LHAG) jumped 6.8% in anticipation of state aid from Berlin, while Air France KLM (PA:AIRF) rose 5.2% after the French and Dutch governments pledged at least 9 billion euros ($9.7 billion) in support.

 Adidas (DE:ADSGN) reported a 93% plunge in first-quarter profit and sales off 19%, missing forecasts, and warned of a deeper hit to second-quarter revenue as lockdowns forced the German sportswear maker to close stores. Adidas shares still rose 4.4%.  

It wasn't all good news though, as Airbus Group SE (PA:AIR) stock fell 1.9% after an internal memo from CEO Guillaume Faury warned of further job cuts due to it bleeding cash "at an unprecedented speed."

The oil market also sold off Monday, retreating from recent gains as traders fret that production cuts may not be enough to eradicate oversupply.

At 4 AM ET, U.S. crude June futures traded 13% lower at $14.66 a barrel. The international benchmark Brent contract fell 4.8% to $23.61.

Elsewhere, gold futures rose 0.1% to $1,736.20/oz, while EUR/USD traded at 1.0838, up 0.2% on the day.

Stocks - Europe Pushes Higher; Central Banks and Reopenings Eyed

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with 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
  • 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.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. 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