European shares slipped on Friday with investor concern and the second wave of coronovirus cases in the region hit the travel sector. Meanwhile, deal news was transferring the shares of Covestro, Euronext and Caixabank.
On Thursday, 0.5% was flat on the heels which pulled off a four-day win streak. The week is like Thursday with a gain of about 1%. German DAX DAX,
And French CAC 40 px 1,
Fell 0.1%, while the FTSE 100 index UKX,
US stock futures ES00,
Nasdaq-100 futures NQ00, although were flat
Technology stocks pointed to a rebound. Wall Street shares slipped with Dow DJIA on Thursday,
Drawing a four-day winning streak, however, the index closed the day’s worst level. An upbeat outlook from the Federal Reserve and lack of data were factors.
“While market sentiment remains fragile, we believe the fundamentals behind the rally still have a place and we are not expecting a recent sell-off in the US as the beginning of a bear market. In our cross-asset portfolio, we are holding our long positions on European stocks, ”Benedict Lowe said in a note to clients, Cross Asset Strategist at BNP Paribas, London branch.
In Europe, there was growing concern about the epidemic. The Regional Director of the World Health Organization in Europe, Dr. Hans Kluge on Thursday warned of a dangerous increase in coronavirus cases in the region. Urging the seminar, he said that the weekly cases “outweighed those when the epidemic first broke out in Europe in March”.
“We have a very serious situation in front of us,” Kluge said.
One of the worst-affected countries in the first wave, Spain is in the grip of a second wave, with the Madrid region and home to the country’s capital city, witnessing growing cases. The government is expected to announce new sanctions on Friday and curb the outbreak. And over 10 million people in North East England are in lockdown due to rising infection rates.
Travel and tourism related sectors fell across the sector with shares of the International Symposium Airlines Group IAG,
Below 7%, easyJet plc EZJ,
IHG, down about 6% and Intercontinental Hotel Group plc
Falling about 4%. Shares of Fraport FRA, operator of German airport
Slipped over 5%.
Spain was also the location of major merger news on Friday. Boards of CaixaBank SA CABK,
& BANKIA SA BKIA,
Approved a merger that would make Spain the largest domestic lender with assets of more than 650 billion euros ($ 770.22 billion). CaixaBank shares fell 0.5% and Bankia’s fell 1.8%.
Under the terms of the agreement, Caixa will absorb Bankia, whose shareholders will receive 0.68 shares in Caixa for each of their shares. This represents a premium of 20% based on Bankia’s share price on 3 September, but some analysts had estimated it to be over 40%.
Spain IBEX 35 index dropped 1%, with shares of heavyweight Banco Santander San,
And BBVA SA BBVA,
2% or more below, and a decline of over 2% for Inditex ITX,
Joe owns retail chains such as Zara and Bershka.
Elsewhere, Covestro AG 1COV shares,
Bloomberg News reported that Apollo Global Management has canceled the takeover of the plastic-making company, citing sources. The report stated that Covestro refused to comment and that an Apollo source could not be immediately reached.
And shares of Euronext NV ENX,
London Stock Exchange Group plc climbed 3.9% after LSE.
It said that it has negotiated with the Exchange Group for the sale of Italy’s Borsa Italian. LSE shares rose 0.5%.