European stocks flat as upbeat earnings offset U.S. stimulus doubts By Reuters


© Reuters. FILE PHOTO: The German share price index DAX graph at the stock exchange in Frankfurt

By Sruthi Shankar

(Reuters) – European stocks hovered near a two-week high on Wednesday as upbeat earnings reports from UK’s Tesco (OTC:) and Germany’s Dialog Semiconductor helped offset uncertainties surrounding a fresh U.S. stimulus package.

Asian stocks and U.S. futures also recovered from sharp losses that were sparked by U.S. President Donald Trump abruptly calling off talks with Democratic lawmakers on the coronavirus relief legislation until after the election. ()

Later on, Trump urged Congress to provide $1,200 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 a ground. But I’m sceptical we’ll get one before the election.”

The pan-European STOXX 600 index () was trading flat, with banks (), insurers () and energy companies () retreating after a rally in the previous session.

The benchmark hit a two-week high earlier this week on reports of progress in Trump’s health after he tested positive for COVID-19, although trading has been choppy amid uncertainties about the November election.

Britain’s biggest supermarket chain Tesco (L:) gained 2.2% as it reported a jump in sales and forecast full-year retail operating profit to be at least the same level as 2019-20.

Dialog Semiconductor (DE:) rose 2.4% after it forecast better-than-expected revenue in its third quarter.

Beverages companies AB InBev (BR:), Heineken (AS:), and Pernod Ricard (PA:) rose between 2.5% and 3% after Jefferies (NYSE:) upgraded the stocks to “buy”, while double upgrading Diageo (L:).

Swedish audiobook streaming group Storytel (ST:) was up 4.3% after it beat its third-quarter forecast for subscriber growth and streaming revenue.

Nexi (MI:) slid 5.1% after top shareholder Mercury UK Holdco said it was selling 13.4% of its stake in the Italian payments group, a day after Nexi announced a merger with rival SIA.

Tour operator TUI (L:) (DE:) fell 4.7% after it named Sebastian Ebel as its new finance chief.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Be the first to comment

Leave a Reply

Your email address will not be published.


*