European stocks fall for 3rd day on fears about eurozone's recovery

2020-10-21 12:29:12 GMT (Economies.com)
European stocks fall for 3rd day on fears about eurozone's recovery

European stocks fell in early trading on Wednesday, to deepen losses for the third straight day, on fears over the European economic recovery amid the rising coronavirus infections, and the high exchange rate of the euro against other major currencies, which offset hopes about the US stimulus package.

 

The Stoxx Europe 600 index fell 0.9% as of 11:15 GMT, after it closed lower by 0.2% yesterday, in the second daily drop due to fears over the second wave of Covid-19 infections.

 

The pan European index opened lower today, to head for the third straight daily loss, with most of the major European markets and sectors seeing red today.

 

The construction sector saw the largest losses in Europe today, falling around 2%, due to weak Q3 earnings by major companies.

 

Most European stock are being weighed down by growing concerns that the European economic recovery will tumble, amid the rising coronavirus infections, and the high exchange rate of the euro against other major currencies.

 

Reuters reported that new coronavirus cases in Europe surged to a record high this week, which renewed concerns about re-imposing lockdown restrictions again.

 

EUR/USD jumped today to a 4-week high at $1.1870, rallying for the fourth straight day, while the ECB warned lately from the impact of the euro's rise on the economic recovery pace.

 

S&P 500 futures rose 0.25%, after closing higher by 0.5% yesterday, thanks to hopes about the US stimulus package.

 

White House chief of staff Mark Meadows stated that Treasury Secretary Steven Mnuchin and House Speaker Nancy Pelosi made made progress on coronavirus stimulus talks, but still need to overcome major differences to reach a deal.

 

Back to Europe, the Euro Stoxx 50 index fell more than 0.9%, France's CAC 40 fell 0.9%, Germany's DAX fell 0.8%, and the UK's FTSE 100 lost 1.1%.

 
 
 
  Symbol Last Change Chg.%
1.1907
0.0013
0.1064%
1.3384
0.0001
0.0112%
Tadawul
8688.76
21.04
0.24%
23.417
-0.628
2.614%
45.380
2.555
5.966%
48.21
0.31
0.65%
1812.690
-53.820
2.884%
 
 
US
 
Europe
 
Asia