European stocks slump after U.S. stimulus bill stalls

European stocks slump after U.S. stimulus bill stalls

European stocks traded sharply lower in early action Monday, after the U.S. Senate failed to advance a motion to provide stimulus to counter the economic effort of shutdowns.

The Stoxx Europe 600
XX:SXXP
, down over 32% over the last five weeks, fell 4.8% to 279.02.

The major regional indexes in Europe also suffered, with the German DAX
DX:DAX
, French CAC 40
FR:PX1
and the U.K. FTSE 100
UK:UKX
all retreating.

U.S. stock futures
US:ES00
also fell, as did Brent crude-oil futures
UK:BRN00
.

The U.S. Senate, shorthanded as one senator tested positive for coronavirus and others quarantined themselves, did not advance a bill on the stimulus package, as talks still continued between key Republican and Democratic figures.

Germany meanwhile may authorize more than 350 billion euros in new debt, according to reports, as Chancellor Angela Merkel was quarantined after coming into a contact with a virus-carrying doctor. The U.K. after markets closed on Friday rolled out a program that would guarantee most of the pay of workers kept on the payroll.

There have been 341,365 confirmed coronavirus cases globally, with 14,759 deaths and nearly 100,000 recoveries. Italy has had the most fatalities at 5,476, according to the Johns Hopkins tracker of official government data.

European companies announced cost-cutting moves in response.

Airbus
FR:AIR
dropped over 8% as the planemaker said it is canceling planned dividend payments and lining up 15 billion euros in new credit.

Royal Dutch Shell
UK:RDSA
fell 2% as it said it’s halting its buyback program as it announced cuts to operational and capital spending to boost its free cash flow by up to $9 billion before tax. Another major European oil company, Total
FR:FP
, declined 3% as it said it’s halti

Read More

Leave a Comment

Your email address will not be published. Required fields are marked *