Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  News  >  Indexes & Markets

News : Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 

European shares slip as BREXIT, lockdown worries outweigh upbeat earnings

10/20/2020 | 12:24pm EST
FILE PHOTO: The German share price index DAX graph at the stock exchange in Frankfurt

(Reuters) - European stocks fell on Tuesday as worries about coronavirus curbs and BREXIT countered optimism generated by strong earnings, including from Swiss bank UBS and consumer giant Reckitt Benckiser. Italy, Spain and Britain imposed curbs to limit the spread of new coronavirus cases that threaten to derail a budding economic recovery. The latest curbs in Ireland will see GDP fall by 3.5% this year, Finance Minister Paschal Donohoe said.

The pan-region STOXX 600 has recovered about 35% from a pandemic-panic plunge in March, but is struggling to reach pre-crisis levels, plateauing as the second-wave of the disease grips. On Tuesday, the index closed down 0.35%.

Meanwhile, the European Union and Britain struggled to make progress on a trade deal to avoid a fast-approaching disruptive finale to the five-year drama of Britain's departure from the EU.

"Both sides realistically have until the middle of November (to strike a deal). That means there is still time for things to go wrong, and the risk of there being no deal, or only a wafer-thin agreement, are uncomfortably high," said Timme Spakman, economist, international trade analysis at ING.

"The economic impact of a no-deal BREXIT on the EU economy will be significant... The automotive industry, agriculture and chemical sectors <.SX4P> stand to be the most affected."

Earnings were a bright spot. UBS rose 2.7% as it posted a 99% jump in quarterly profit, while computer peripherals maker Logitech International gained 16% after it raised its full-year forecast.

Robust demand in the United States and China helped cognac maker Remy Cointreau post a broader recovery in second-quarter sales, but its shares slipped 2.4% with some analysts saying it may have been priced in.

Swedish telecoms operator Tele2 fell 4.7% after it stuck to its outlook for roughly unchanged operating profit in 2020.

"What most investors are looking at it is how strong 2021 recovery will be," said Nick Peters, multi-asset portfolio manager at Fidelity International.

Third-quarter profits for companies on STOXX 600 are expected to drop 36.7%, Refinitiv data shows, improving from a 51% plunge in the previous quarter when economic losses from the pandemic peaked.

London's FTSE rose as much as 0.7% before ending flat. Bank of England policymaker Gertjan Vlieghe said the central bank could need to add more stimulus.

(Reporting by Sruthi Shankar in Bengaluru; Editing by Sriraj Kalluvila and Barbara Lewis)

By Sruthi Shankar and Susan Mathew


© Reuters 2020
Stocks mentioned in the article
ChangeLast1st jan.
EURO / BRITISH POUND (EUR/GBP) 0.14% 0.89808 Delayed Quote.6.21%
EURO STOXX 50 1.03% 3528.29 Delayed Quote.-6.75%
LOGITECH INTERNATIONAL S.A. -2.07% 79.1 Delayed Quote.75.39%
RECKITT BENCKISER GROUP PLC -0.52% 6514.57 Delayed Quote.7.42%
RÉMY COINTREAU -1.07% 147.1 Real-time Quote.36.07%
STOXX EUROPE 600 -0.98% 392.44 Delayed Quote.-6.37%
TELE2 AB (PUBL) -0.45% 110.05 Delayed Quote.-18.81%
UBS GROUP AG -2.05% 12.835 Delayed Quote.5.44%
Latest news "Markets"
05:43aStock Futures Point to Fresh Records for Major Indexes
DJ
05:32aSensex, Nifty hit record closing highs on vaccine hopes, signs of economic recovery
RE
04:39aFTSE : 100 jumps as upbeat factory activity data fuels recovery hopes
RE
04:35aEUROPE : European shares rise on vaccine hopes; Brexit talks eyed
RE
11/30S&P 500 to swallow Tesla in one gulp; shares surge
RE
11/30ADRs End Monday off 2.3%; Alibaba's ADRs Down Amid US-China Tensions
DJ
11/30Tesla to Enter S&P 500 at Full Weight in December
DJ
11/30WALL STREET STOCK EXCHANGE : Best Nov. for S&P 500, best Dow month since '87
RE
11/30Dow Falls, But Holds On For Best Month in Over Three Decades
DJ
11/30Record monthly pct gains for russell 2000, s&p 600
RE
Latest news "Markets"