قالب وردپرس درنا توس
Home / Business / European stocks and futures on the Dow traded lower among earnings and concerns about slow recovery

European stocks and futures on the Dow traded lower among earnings and concerns about slow recovery



July 16, 2020 at the Shell refinery in Pulau Buk in Singapore.

Roslan Rahman / Agence France-Presse / Getty Images

European stocks traded on Thursday, the busiest day of the earning season in the second quarter, fearing a slow economic recovery and a possible second wave of the coronavirus pandemic.

Stoxx Europe 600 SXXP,
-1.22%
decreased by 1.4%. US YM00 futures,
-0.87%
fell sharply when European stock markets opened.

German DAX DAX,
-2.34%
brought 2.5% and FTSE 100 UKX,
-1.52%
decreased by 1.7%.

Traders looked at the US economy, where Federal Reserve Chairman Jerome Powell reiterated that the central bank was not even “thinking about raising” interest rates, as second-quarter gross domestic product is expected to fall 35% a year when they are released at 8:30 a.m. in the east.

Germany reported its worst decline in GDP since 1970, with the eurozone’s highest economy falling 10.1% in the quarter.

The Prime Minister of the United Kingdom Boris Johnson fears a second wave of coronavirus in two weeks, according to the Daily Mail, citing a source on Downing Street. The total number of coronavirus cases worldwide has exceeded 17 million.

The profit season continues on both sides of the Atlantic. Earnings per share of Stoxx Europe 600 companies in the second quarter fell 42%, according to FactSet Research for 40% of results.

Anheser-Bush InBev ABI,
+ 5.44%
BUD,
+ 1.90%
shares rose 6% as Budweiser’s second-quarter earnings came below estimates after the African business was written off. But the decline in revenue has not been as steep as estimated, thanks to Latin American and Asian businesses.

Lloyds LLOY Banking Group,
-6.41%
decreased by 8%, after it recorded unexpected pre-tax losses for the first half of 2020 when booking a large utility reduction fee.

Royal Dutch Shell RDSA,
-1.97%
took a write-off of $ 16.8 billion and said that due to the backlog in contracts, the impact of low oil prices is expected to become more significant in the third quarter, and competing with Total FP,
+ 1.51%
took a depreciation of $ 8.1 billion.

AstraZeneca AZN,
+ 2.43%
rose 2.3 percent when the British pharmaceutical giant said net income rose in the second quarter and said late-stage trials were underway for a coronavirus vaccine it was developing with researchers at Oxford University.

Also on Thursday, US revenue is approaching, and key technology companies Alphabet, Amazon.com, Apple and Facebook are reporting after the close of trading.


Source link