US and European equities principally fell Thursday on mounting proof from companies and governments of a coronavirus-induced downturn, crystalized by the worst quarterly drop in US development since information started after World Conflict II.
The slide got here on the heels of a dark Federal Reserve warning over a US spike in COVID-19 infections, including to fears of extra job losses amid a pandemic that continues to pound the worldwide financial system.
Main Asian buying and selling hubs had managed to restrict losses earlier than the US Commerce Division revealed that the world’s largest financial system contracted by one-third within the second quarter — the worst decline on document.
In Frankfurt, the benchmark DAX index closed 3.Four p.c decrease on information exhibiting that Germany’s highly effective financial system shrank by a document 10.1 p.c within the second quarter.
Elsewhere, London’s FTSE 100 misplaced 2.Three p.c and Paris fell by greater than two p.c on an avalanche of gloomy company earnings tied to the affect of the pandemic.
Investor alarm unfold in Europe on information of disappointing losses from the likes of plane producer Airbus, steelmaker ArcelorMittal and power giants Eni and Royal Dutch Shell.
Wall Road additionally had a reasonably gloomy session, with the Dow and S&P 500 ending solidly decrease after the Commerce Division reported the US financial system contracted a shocking 32.9 p.c within the second quarter attributable to enterprise shutdowns.
Maybe extra troubling was new Labor Division information exhibiting that the US noticed its second consecutive weekly enhance in preliminary claims for unemployment advantages, with one other 1.43 million filed final week.
– Capitol Hill impasse –
Congress is presently locked in debate over the dimensions and composition of the following spending invoice, with Democrats preventing to retain the $600 further weekly cost made to unemployed staff set to run out Friday.
Republicans wish to minimize that cash and supply companies that reopen safety if workers grow to be contaminated.
“The staggering information of the historic decline of the gross home product within the second quarter ought to shock us all,” US Chamber of Commerce Govt Vice President Neil Bradley stated in a press release.
The information “ought to compel Congress to maneuver swiftly” to supply help to unemployed staff and companies.
Whereas US shares principally fell, the Nasdaq was a shiny spot, working its manner into constructive territory and shutting up 0.Four p.c forward of a deluge of earnings experiences from huge tech firms.
Apple, Amazon, Fb and Google mum or dad Alphabet all reported larger earnings. Shares of these firms rose in after-hours buying and selling, however the beneficial properties got here after the shares gained large will increase in current months that might depart them susceptible to a sell-off, analyst say.
– Key figures round 2200 GMT –
New York – Dow: DOWN 0.9 p.c at 26,313.65 (shut)
New York – S&P 500: DOWN 0.Four p.c at 3,246.22 (shut)
New York – Nasdaq: UP 0.Four p.c at 10,587.81 (shut)
London – FTSE 100: DOWN 2.Three p.c at 5,989.99 (shut)
Frankfurt – DAX 30: DOWN 3.5 p.c at 12,379.65 (shut)
Paris – CAC 40: DOWN 2.eight p.c at 4,852.94 (shut)
EURO STOXX 50: DOWN 2.78 p.c at 3,208.20 (shut)
Tokyo – Nikkei 225: DOWN 0.Three p.c at 22,339.23 (shut)
Hong Kong – Grasp Seng: DOWN 0.7 p.c at 24,710.59 (shut)
Shanghai – Composite: DOWN 0.2 p.c at 3,286.82 (shut)
Euro/greenback: UP at $1.1839 from $1.1792 at 2100 GMT
Greenback/yen: DOWN at 104.78 yen from 104.92 yen
Pound/greenback: UP at $1.3088 from $1.2997
Euro/pound: DOWN at 90.40 pence from 90.73
West Texas Intermediate: DOWN 3.Four p.c at $39.86 per barrel
Brent North Sea crude: DOWN 1.9 p.c at $42.94 per barrel