European stocks are breaking from the overnight trend in Asia; The biggest movers
European markets advanced on Friday morning, looking to bounce back from steep losses in the previous session, with the rapid spread of coronavirus through the continent remaining on investors’ radar.
The pan-European Stoxx 600 climbed 0.8% by mid-morning trade, with autos jumping 2.5% to lead gains while telecoms bucked the upward trend to fall 0.5%.
With countries across Europe reimposing social restrictions amid a spike in Covid-19 cases and hopes dwindling over a U.S. stimulus deal, markets took a tumble Thursday.
U.S. President Donald Trump suggested on Thursday that he is prepared to up the $1.8 trillion package in a bid to secure approval from congressional Democrats, but the suggestion was shot down by Republican Senate Majority Leader Mitch McConnell.
European stocks are breaking from the overnight trend in Asia, where markets mostly declined as the uptick in coronavirus cases across Europe and the U.S. continued to dampen sentiment.
Back in Europe, the European Union has urged the U.K. to cede ground in negotiations over a new trading relationship or face significant trade disruptions at the end of the year, a move Britain called “disappointing.”
In corporate news, the U.S. has offered to remove tariffs on whisky, wine and other products from the European Union if Airbus repays billions of dollars of aid to European governments, Reuters reported citing sources close to the matter.
Daimler on Thursday beat third-quarter earnings expectations on the back of a strong September and a faster-than-expected industry recovery.
On the data front, August’s balance of trade figure and September’s inflation rates for the euro zone are expected at 10 a.m. London time.
Thyssenkrupp shares bounced more than 15% in early trade after reports that Britain’s Liberty Steel is lining up a takeover bid for the German conglomerate’s beleaguered steel unit.
At the other end of the European blue chip index, Getinge dropped 9% after reporting a fall in ventilator orders, despite soaring profits in the third quarter, while Galapagos shares fell 8.8% after both Credit Suisse and KBC Securities cut the Belgian pharmaceutical company’s price target.
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