European stocks dive to 4-week low on weak earnings reports

2020-07-30 12:24:14 GMT (Economies.com)
European stocks dive to 4-week low on weak earnings reports

European stocks fell on Thursday, to deepen losses for the second straight session, and hit a 4-week low, due to disappointing earnings reports by major companies, which have offset the US Federal Reserve's pledge to support the US economy from the coronavirus pandemic.

 

The Stoxx Europe 600 index fell 1.8% as of 11:15 GMT,  and hit the lowest since July 1st at 360.75 points, after it lost 0.1% yesterday, as the the banking and healthcare stocks slumped.

 

The pan European index opened lower today, to deepen losses for the second straight session, and hit a 4-week low, with most of the major European markets and sectors seeing red today.

 

The automotive sector saw the largest losses in Europe today, dropping 2%, followed by the banking sector, with a drop of 1.8%.

 

Volkswagen stocks fell over 4%, after the German automaker reported an operating loss in the first half, as the coronavirus led to a 27% drop in vehicle deliveries rate.

 

The US Federal Reserve pledged after two-day meeting to continue its bond purchases and lending programs while to bolster the economy against the pandemic.

 

The Fed stressed the economy is still behind its pre-pandemic levels, and a full recovery will depend on containing the virus.

 

S&P 500 futures fell 1.25%, after the index closed higher by 1.2% yesterday at Wall Street, after the Federal Reserve meeting.

 

Back to Europe, the Euro Stoxx 50 index fell 2.1%, France's CAC 40 fell 1.6%, Germany's DAX lost 2.8%, and the UK's FTSE 100 dipped 1.9%.

 
 
 
  Symbol Last Change Chg.%
1.2115
0.0118
0.9857%
1.3370
0.0000
0.0030%
Tadawul
8694.13
-17.99
0.21%
24.115
1.869
8.399%
44.950
-0.380
0.838%
47.90
0.51
1.08%
1831.050
54.870
3.089%
 
 
US
 
Europe
 
Asia