(RTTNews) – European markets ended with a sharp drop on Thursday as stocks plummeted due to heavy liquidation, as considerations of the effect of the coronavirus pandemic intensified after knowledge showed a sharp contraction in U.S. GDP. And the Fed’s weak outlook for the economy.
He also s curbed a series of disappointing profit reports from leading Europeans.
Pan-European Stoxx six hundred fell by 2.16%. The UK’s FTSE fell 1.31%, France’s CAC 40 fell 2.13%, Germany’s DAX fell 3.45% and Switzerland’s SMI lost 1.73%.
Markets between Europe, Austria, Belgium, the Czech Republic, Finland, Greece, Iceland, Ireland, the Netherlands, Norway, Poland, Portugal, Russia, Spain and Sweden closed sharply downwards, with benchmarks falling from 1 to 3.4%.
In the UK market, Lloyds Banking Group shares fell 7.7% after reaching a tax-tax loss in the first part of 2020.
On the other hand, BAE Systems surged up nearly 6%. AstraZeneca gained 1.5% after second-quarter sales and profit topped forecasts. Flutter Entertainment and Rentokil Initial also ended sharply higher.
In the French market, Renault plummeted more than 9% on disappointing results. Unibail Rodamco lost 8.7%. Orange, Danone, Societe Generale, ArcelorMittal, Peugeot, Credit Agricole, Capgemini, BNP Paribas, STMicroElectronics, Carrefour and Saint Cobain declined 3 to 6%.
By contrast, Technip rose 5.4%, Safran through 4% and Airbus Group shares increased by about 1.9%.
In economic news, Destatis’ knowledge per month showed that germany’s unemployment rate rose to 4.2% state in June, up from 4.1% in May. On an uns seasonally adjusted basis, the unemployment rate of 4.5% compared to 4.4% a month ago.
The German economy peaked in the quarter in the context of a coronavirus pandemic, revealing other knowledge of Destatis. Gross domestic product declined 10.1% sequentially after falling 2% in the first quarter. This is the biggest decrease since records began in 1970. Economists had forecast a 9% decline.
Another data from Destatis showed consumer prices in Germany declined unexpectedly by 0.1% year-on-year, following a 0.9% rise in June. Prices were forecast to rise 0.2%. On a monthly basis, consumer prices were down 0.5%, faster than the expected fall of 0.2%.
Data from Eurostat showed the jobless rate in the euro area rose to 7.8% in June from 7.7% in May. The rate was forecast to remain unchanged at 7.7%.
Economic confidence in the dominance of the euro advanced to a maximum of four months in July as sentiment in the industry and facilities sectors was strengthened amid the flexibilization of coronavirus containment measures, according to the survey’ knowledge. Elsewhere, official knowledge showed that the unemployment rate had risen in June, member countries began to eliminate strict measures taken to curb the spread of Covid-19.
The economic sentiment index rose to 82.3 in July from 75.8 last month, according to data from the European Commission’s survey. The score goes up to 81.0.
In the French market, producer prices decreased 2.3% annually in June, following a 3.4% fall in the previous month. On a monthly basis, producer prices rose 0.7% in June, after remaining unchanged in the previous month.
In U.S. economic news, data from the Commerce Department showed real gross domestic product plummeted at an annual rate of 32.9% in the second quarter following a 5% slump in the first quarter. Economists had expected a 34.1% nosedive in GDP.
A Department of Labor report said the initial task claims an increase of 1.434 million in the week ended July 25, an increase of 12,000 from the revised point of 1,422,000 last week. Economists expected unemployment claims to succeed at 1.45 billion compared to 1.416 million, first reported over the past week.