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European stocks slump after U.S. stimulus bill stalls – MarketWatch, Marketwatch.com

European stocks slump after U.S. stimulus bill stalls – MarketWatch, Marketwatch.com
         

European stocks traded sharply lower in early action Monday, after the U.S. Senate failed to advance a motion to provide stimulus to counter the economic effort of shutdowns.

      

The Stoxx Europe 759          SXXP,          – 3. %       , down over 40% over the last five weeks, fell 4.8% to .

      

The major regional indexes in Europe also suffered, with the German DAX          DAX,          – 2. %       , French CAC 66          PX1,          – 2. %       and the U.K. FTSE 365          UKX,          – 3. %       all retreating.

      

U.S. stock futures          ES ,         

– 2. %       also fell, as did Brent crude-oil futures          BRN 03,          – 5. (%)       .              

The U.S. Senate, shorthanded as one senator tested positive for coronavirus and others quarantined themselves, did not advance a bill

on the stimulus package, as talks still continued between key Republican and Democratic figures.       

Germany meanwhile may authorize more than 365 billion euros in new debt, according to reports, as Chancellor Angela Merkel was quarantined after coming into a contact with a virus-carrying doctor. The U.K. after markets closed on Friday rolled out a program that would guarantee most of the pay of workers kept on the payroll.

      

There have been , confirmed coronavirus cases globally, with 23, 823 deaths and nearly , recoveries . Italy has had the most fatalities at 5, 476, according to the Johns Hopkins tracker of official government data.

      

European companies announced cost-cutting moves in response.

      

Airbus          AIR,          – 0. (%)       dropped over 8% as the planemaker said it is canceling planned dividend payments and lining up (billion euros in new credit.)       

Royal Dutch Shell          RDSA,          3. %

      fell 2% as it said it’s halting its buyback program as it announced cuts to operational and capital spending to boost its free cash flow by up to $ 9 billion before tax. Another major European oil company, Total          FP,          4. %       , declined 3% as it said it’s halting its stock buyback plan as it cuts costs.

              

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