The Paris Stock Exchange lost 0.68%, that of Frankfurt 0.30%, London 0.83%, Milan 0.52% and Madrid 0.66%. In Zurich, the SMI lost 0.58%.
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European stock markets fell on Tuesday, unsure of where to find the boost as the economic consequences of the coronavirus continue to hit most countries around the world.
The Paris Stock Exchange lost 0.68%, that of Frankfurt 0.30%, London 0.83%, Milan 0.52% and Madrid 0.66%. In Zurich, the SMI lost 0.58%.
“The mood is not in good shape in Europe,” said David Madden, analyst for CMC Markets UK.
For six months and the outbreak of the coronavirus crisis, every day has brought its share of bad news on the front of the pandemic and its health and economic consequences. The latest on the Old Continent is the resurgence of the virus which has reached worrying levels in France, Spain and Italy, a country already ravaged by the first wave. In France, the wearing of the mask will be “systematized” in French companies, indicated the Minister of Labor Élisabeth Borne.
Beyond Europe, Boeing on Tuesday proposed a second voluntary departure plan, the Marks and Spencer chain of stores announced 7,000 job cuts, and Chile saw its GDP plunge 14.1% in the second quarter, umpteenth country to experience a double-digit percentage drop in GDP.
Risk
The drop of the day “remains very measured in relation to the risk we run” across the world, said Mikaël Jacoby, brokerage manager Continental Europe for Oddo Securities.
The expert also notes “very anecdotal” trading volumes on the stock market, a current situation in the middle of August.
Since the end of December, the pandemic has killed at least 770,429 people around the world, according to a report established by AFP from official sources.
The news did not prevent the New York Stock Exchange from setting new records in session Tuesday, helped by strong corporate results and a sharp rise in housing starts in the United States. At mid-session, the S&P 500 index took 0.22%, the Nasdaq 0.62% and the Dow Jones dropped 0.19%.
Today’s trading session was also marked by a sharp decline in the dollar, to its lowest for more than two years against the euro.
“The strength of the euro does not suit European exporters, but the markets have not seized on this theme so far,” said Tangi Le Liboux, analyst for broker Aurel BGC.
Airbus for example lost 3.09% to 69.23 euros, while Accor dropped 1.20% to 23.03 euros after its degradation in the “speculative” category by the rating agency S&P.
After its announcement of job cuts, Marks and Spencer dropped 0.30% to 113.26 pence.
The soap opera around Lagardère continued, causing the group to lose 3.39% to 15.10 euros. Its two main shareholders Amber and Vivendi deplored on Tuesday the anticipated renewal of Arnaud Lagardère as manager of the group, seeing it as a new example of dysfunction in its governance.
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