Frankfurt recorded the largest decline with -0.41% after a session disrupted by a computer failure of several hours.
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European stock markets all finished slightly lower on Wednesday, despite positive economic signs.
Frankfurt recorded the largest decline with -0.41% after a session disrupted by a computer failure of several hours. Milan (-0.23%), London (-0.19%) and Paris (-0.18%) closed in the same waters while Madrid was flat at -0.06%.
Wall Street was moving up: at 4:40 pm GMT its flagship index, the Dow Jones Industrial Average rose by 0.33%, the broad S&P 500 index gained 0.62% and the Nasdaq, with strong technological coloring, appreciated by 1 %, in the wake of good figures for American private employment.
“Equities have experienced great volatility today. Health concerns weighed on the morning feeling, but the mood improved with the hope of a vaccine against Covid-19, “analyzes David Madden of CMC Market.
The American pharmaceutical laboratory Pfizer has notably published positive results of an early phase clinical trial for a vaccine.
Another good news, the figures of American private employment which are “a surprise”, judge with AFP Waldermar Brun-Theremin, manager of Turgot Asset Management.
Job creations in June were lower than analysts’ forecasts but the May data were revised significantly, from 2.7 million jobs destroyed to 3.06 million jobs created.
And activity in the manufacturing sector in the United States rebounded sharply in June and is expanding again, to 52.6% according to the ISM index.
However, this momentum remains fragile.
“Many US SMEs remain in dire straits and the Fed’s assistance program ended on June 30. 70% of small businesses have used it, ”says Brun-Theremin.
As for large companies, layoffs are increasing, which can “weigh on consumption”, the main engine of growth in Europe and the United States “in the medium term”.
The recovery is also under threat from the expansion of the Covid-19 in the southern United States. The threshold of a thousand deaths in one day across the United States was crossed on Tuesday, for the first time since June 10.
Risks of instability
Other factors of instability continue to weigh on the markets, notably geopolitical tensions around the strengthening of Chinese control over Hong Kong or the Brexit negotiations.
German Chancellor Angela Merkel has called on the European Union to prepare for a possible no-deal on the future commercial relationship with the United Kingdom.
Germany took over the rotating EU presidency on Wednesday. “It is a good thing with the change of mentality in the country” towards a greater acceptance of budgetary spending, estimates Mr. Brun-Theremin, while the 27 discuss around a recovery plan of 750 billion euros .
In terms of values, Continental suffered in Germany and lost 3.21% to 84.36 euros. The automotive supplier was targeted by searches in the investigation of the “Dieselgate”, a vast scandal of engineered engine that has been splashing over the German automotive sector for five years.
The number two British supermarket Sainsbury also suffered a sharp decline of 2.48% to 203.53 pence. He recorded a jump in sales during the confinement but the sanitary measures will cost him 500 million pounds.
In Paris, the aeronautical manufacturer Airbus rose 1.05% to 64.19 euros, the day after the presentation by the group of a vast restructuring plan which provides for the elimination of 15,000 jobs worldwide by l summer 2021.
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