European stocks weakened on Thursday after US rivals accused of interference in the election, even as a new round of stimulus for the US economy has progressed and grossly outperformed earnings estimates .
Stokes Europe 600 SXXP,
Dropped 0.6%, and German DAX DAX,
0.7% lost. French CAC 40 PX1,
And UK FTSE 100 UKX,
Bond yields fell on Wednesday, while TMUBMUSD10Y,
The fiscal stimulus package rose amid negotiations. A spokeswoman for House Speaker Nancy Pelosi said talks between her and US Treasury Secretary Steven Mnuchin have reached a stage where they are “close to being able to hold a pen to write the law,” and continue Thursday Will stay
Michael Brown, senior market analyst at Caxton, London, said, “The recent bond market selloff is the first indication that the market may be temporarily buying into a reflection trade.
The US accused Iran of interfering in the upcoming election, saying the country was behind threatening emails to Democratic registered voters in the battlegrounds, and Russia also obtained voter registration data. Former vice president Joe Biden and US President Donald Trump will have a second and final debate on Thursday night after the market closes.
Futures on Dow Jones Industrial Average YM00,
Fell 98 points.
Chris Sisluna, head of research for midwives in London, said the importance of news reports of markets intervening was that this could encourage Trump to dispute the election result.
Europe is still grappling with an increase in COVID-19 cases. According to the European Center for Discipline Control, the Czech Republic, the Netherlands and Belgium have the highest per capita infection rates in the last 14 days. UK Chancellor Sage Craze is expected to assist companies stuck in new restrictions on hard-hit areas.
The European Union and the UK are also set to resume talks on a trade deal when the UK ends its current arrangement with the bloc at the end of the year.
Income season rolls on both sides of the Atlantic and, for the most part, exceeded expectations. According to FactSet, Stoxx 600 earnings are now expected to drop 31% in the third quarter, 35% at the end of June.
International Airlines Group IAG,
It dropped 2% compared to poor-to-expected revenue in the third quarter, and said it would not meet its target of having a break-even on cash flow in the fourth quarter as it would operate at 30% capacity.
The consumer products giant estimated better than anticipated and maintained its dividend.
Schneider Electric SU,
There was an increase of 3%, as the French energy-management company said it now expects sales to fall between 5% and 7% versus a previous guidance of a drop of between 7% and 10%.
Shares of Varta VAR1,
A German battery technology company slipped 7% by 2026 after extending its contract to its chief executive, Herbert Schein.
German-listed shares of electric-car manufacturer Tesla TL0,
After 4% growth, it reported stronger-than-forecast gains on regulatory credit sales.