FRANKFURT, Oct 8 ― European stocks mostly fell yesterday, failing to join a recovery in global equities following a selloff on doubts over US stimulus, with blue-chip shares weighing the most.
The pan-European STOXX 600 index edged 0.1 per cent lower to break a four-session winning run. Blue-chip stocks fell 0.3 per cent.
The healthcare sector was the biggest drag, with telecom, media and real estate stocks also falling.
Asian markets and Wall Street stocks rebounded strongly from overnight losses triggered by US President Donald Trump calling off talks over a coronavirus relief package until after the election.
Later on, however, Trump urged Congress to provide US$1,200 (RM4,985) stimulus checks for Americans and other support for airlines and small businesses.
“You can look at this as partly a negotiating tactic,” said Craig Erlam, senior market analyst at Oanda in London. “You call off talks now in the hopes that the Democrats will cede a little bit of ground. But I'm sceptical we'll get one before the election.”
The benchmark STOXX 600 hit a two-week high earlier this week on reports of improvements in Trump's health after he tested positive for Covid-19, although trading has been choppy amid uncertainties about the November election.
Positive earnings reports and upbeat brokerage recommendations helped limit the losses in Europe.
German logistics group Deutsche Post AG jumped 3.9 per cent as it said it expected “exceptionally strong” business up to Christmas as ecommerce keeps booming during the pandemic.
Dialog Semiconductor rose 3.2 per cent after it forecast better-than-expected revenue in its third quarter.
Miners rose after JP Morgan took an “extreme overweight” position, citing a boost to the sector from China's recovery and potential US stimulus.
BHP, Anglo American and Rio Tinto gained more than 2 per cent, boosting UK's commodity-heavy FTSE 100 .
Beverages companies AB InBev, Heineken, and Pernod Ricard rose between 1.3 per cent and 3.5 per cent after Jefferies upgraded the stocks to “buy”, while double upgrading Diageo.
Britain's biggest supermarket chain Tesco slipped 0.7 per cent, giving back gains after it reported a jump in sales.
Nexi slid 5.7 per cent after top shareholder Mercury UK Holdco said it was selling 13.4 per cent of its stake in the Italian payments group, a day after Nexi announced a merger with rival SIA. ― Reuters
