New decline in actions in the face of the reality of the health crisis

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EUROPEAN SCHOLARSHIPS FALLING AT MID-SESSION

by Laetitia Volga

PARIS (Reuters) – Wall Street is expected to drop slightly and European stock markets move in the red on Thursday at mid-session, the prospect of developing a vaccine against COVID-19 no longer sufficient to calm short-term concerns about the spread of the pandemic and its economic damage.

Futures on the main Wall Street indices suggest an opening down around 0.3% after losing nearly 1% the day before.

The trend could change with the publication, an hour before the opening, of the weekly jobless claims figures and the activity index of the Federal Reserve of Philadelphia in November.

In Paris, the CAC 40 lost 0.71% to 5,472.09 around 11:45 GMT. In Frankfurt, the Dax is down 0.82% and in London, the FTSE by 0.96%.

The pan-European FTSEurofirst 300 index lost 0.79%, the EuroStoxx 50 in the euro zone dropped 0.8% and the Stoxx 600 dropped 0.64%.

Fears related to the health crisis monopolize the attention of investors, obscuring the positive information from several laboratories on their experimental vaccine.

The United States crossed the 250,000 dead mark on Wednesday and New York City announced the closure of public schools on Thursday. Tokyo raised its alert threshold to the maximum level on Thursday as the daily number of new infections hit a record high.

In this context, the President of the European Central Bank, Christine Lagarde, urged the heads of state and government of the Union to break the deadlock on the budget of the European Union in order to limit the economic impact of the second epidemic wave.

VALUES IN EUROPE

Among the sectors showing the strongest declines, energy (-1.67%) suffered from the decline in the oil market while banks (-1.46%) and transport and leisure (-1.51%) suffered. once again fears about the economy.

Last of the CAC 40 in Paris, Société Générale, Unibail-Rodamco-Westfield

Vallourec fell 8.74% after announcing a net loss of 636 million euros for the first nine months of the year and the elimination of around 1,050 jobs.

Bouygues shares failed to resist the downward trend in the market (-0.98%) despite the group’s publication of a strong improvement in its third quarter results, which enabled it to revise its results upwards. outlook for the second half of the year.

The German conglomerate Thyssenkrupp loses 6.34% after announcing the cut of 5,000 additional jobs to mitigate the impact of the health crisis on its activities.

Only the Stoxx index for utilities (+ 0.52%) remained in the green.

RATES / CHANGES

Benchmark government bond yields are trending downward, by nearly three basis points for the US ten-year at 0.8554% and a little over one point for its German equivalent at -0.569% . They are both moving near their ten-day low reached the previous day.

After five sessions of decline, the dollar recovered 0.33% against a basket of international currencies, optimism over vaccines colliding with concerns over the fragile global economic recovery.

The euro fell to $ 1.1834, a decline of 0.15%.

OIL

Oil prices are dropping as an increase in COVID-19 cases and tighter health restrictions weigh on demand expectations.

Brent lost 0.65% to 44.05 dollars a barrel and US light crude lost 1.2% to 41.32 dollars.

(Laetitia Volga, edited by Blandine Hénault)

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