Stock Europe finished trading in the red zone

Stock Europe finished trading in the red zone

Stock Europe finished trading in the red zone

Stock indices in Western Europe declined yesterday amid weakening investor hopes for economic recovery after the coronavirus pandemic amid a second wave of morbidity. Market participants fear that an increase in the number of cases of COVID-19 infection may lead to the introduction of new restrictive measures and impede the recovery of the region's economy, writes Trading Economics.

French Minister of Health Olivier Veran urged residents of the country to minimize social interaction in connection with the worsening situation with the spread of coronavirus. “The situation continues to deteriorate globally,” said Veran, quoted by French media. He noted that the rate of spread of COVID-19 is now higher than during the first wave.

UK Treasury Secretary Rishi Sunak on Thursday unveiled a job support scheme that allows for fewer hours of work instead of reductions, amid rising COVID-19 infections that could threaten a “fragile economic recovery.”

Prime Minister Boris Johnson announced this week that England is re-imposing restrictive measures to combat the coronavirus, in particular restrictions on opening hours for bars and restaurants, as well as on the maximum number of people gathering together.

The German business sentiment index, calculated by the Munich Institute for Economic Research (IFO), climbed to its highest level since February in September 2020. The index of business confidence in the French economy in September rose to 96 points from 92 points in August.

Meanwhile, the German government has approved the draft budget for 2021. Total spending will be € 413.4 billion, up from € 508.5 billion this year. The government noted that due to the emergency caused by the coronavirus pandemic COVID-19, a new debt of 96.2 billion euros is planned for next year. This is a significant amount by German standards, but it will be significantly lower than the amount of funds raised this year – 218 billion euros, Bloomberg notes.

The composite index of the largest enterprises in the region Stoxx Europe 600 dropped 1.02% to 355.85 points.

The British FTSE 100 indicator fell 1.3%, the German DAX – 0.29%, the French CAC 40 – 0.83%. Italy's FTSE MIB and Spain's IBEX 35 lost 0.12% and 0.16%, respectively.

Suez SA shares fell 4.5%. The French company's board of directors has announced measures to prevent the possible sale of its subsidiary Suez Eau France. These measures are part of Suez's efforts to counter the takeover by utility operator Veolia Environment SA.

Capitalization of Smiths Group (LON: SMIN) PLC declined 7.5%. The UK engineering group resumed its dividend payout, recording a drop in pre-tax profit from continuing operations for the fiscal year ended July 31, amid the planned separation of Smiths Medical.

Cineworld Group Plc fell 14.8%. The British cinema operator warned on Thursday that it may have to resort to fundraising if new restrictions are imposed in the country. The company ended the first half of the year with a net loss of $ 1.64 billion due to the coronavirus pandemic.

Airbus SE was down 3.5%. Delta Air Lines Inc (NYSE: DAL). is in talks with a European aerospace concern to reschedule the delivery of at least 40 aircraft to be handed over to the US carrier this year, Bloomberg reported, citing sources.

Pets at Home Group PLC shares jumped 27.8%. The UK-based pet retailer said its pre-tax profit for the year will exceed the market consensus of £ 73m, posting double-digit LFL sales growth in the eight weeks ended 10 September.

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