European stock markets have been swinging between gains and losses over the last couple of weeks as investors don’t know how the economy would behave in the coming days.
Earnings performance and poor second-half outlook confirm that pandemic hit companies are likely to take a longer time for stabilization.
European stock market futures are in green on Thursday after reporting small losses on Wednesday.
The Stoxx Europe 600 dropped 0.2% after attaining a 0.4% value on Tuesday. The German DAX dropped 0.2% and the FTSE 100 index remained flat on Wednesday.
The increasing coronavirus infections around the world are adding to investors’ concerns. The U.S. has reported above 1,000 fatalities in the last two days, while infection cases have also been growing in China.
Deutsche Bank has generated a lower-than-expected loss for the second quarter. It reported a loss of 77 million euros, while its credit loss provision swelled sharply during the quarter. The stock price of Germany’s largest lender fell 2.5% after the earnings release.
Barclay’s shares fell almost 6% amid a huge drop in its earnings. The bank has posted a net income of £695 million for the first half of 2020.
On Wall Street, investors applauded the Federal Reserve’s decision of sustaining zero interest rate policy.
However, the fed chairman has raised investors’ concerns over economic stability due to the sharp growth in virus infections over the last two months.
“On balance, it looks like the data are pointing to a slowing in the pace of the recovery. But I want to stress it is too early to say both how large that is and how sustained that will be,” Powell said at a press conference.
What Does it Mean?
- Gold soars to a fresh new all-time high.
- The Dollar fell and the Euro jumped.
- US futures are in green.
- Oil is stuck around $40 a barrel