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Sept. 25, 2020, 8:25 a.m. EDT

Banks slump in Europe as stocks lurch toward worst week since June

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By Barbara Kollmeyer

European stock markets fell on Friday, as the region’s soaring coronavirus pandemic cases weighed on sentiment, and investors wound down what is set to be the worst week for trading since June.

The Stoxx Europe 600 /zigman2/quotes/210599654/delayed XX:SXXP +0.19% dropped 0.8% to 353.55, after closing down 1% on Thursday. The index is set for a 4.1% weekly drop with one session left to trade, and that would mark its worst weekly performance since the week ending June 12, according to FactSet. The German DAX /zigman2/quotes/210597999/delayed DX:DAX +0.19% and French CAC /zigman2/quotes/210597958/delayed FR:PX1 +0.29% indexes fell 1.4% each and the FTSE 100 /zigman2/quotes/210598409/delayed UK:UKX +0.38% slipped 0.3%.

U.S. stocks finished a turbulent session on Thursday with modest gains. Stock futures /zigman2/quotes/208225921/composite SP -0.44% /zigman2/quotes/210598065/realtime DJIA -0.46% /zigman2/quotes/210598365/realtime COMP -1.69% were weaker ahead of durable goods data. Investors have been watching a last-ditch $2 trillion stimulus-package effort by the Democrats.

Europe is seeped in worries that rising coronavirus cases and fresh restrictions will hamper the early seeds of an economic recovery, which has helped drive investors to the region. Governments in the U.K. and France have introduced new measures to battle climbing cases, while Spain is struggling with a massive outbreak in its Madrid region.

Investors “have every right to be worried about the coronavirus stock market rally, which is under a great threat. The airline, retail, and hospitality sectors are the ones to keep an eye on as investors continue to question their future,” said Naeem Aslam, chief market analyst at AvaTrade.

Meanwhile, the lack of a U.S. stimulus bill ahead of the November presidential election has acted as weight on sentiment globally.

“Given the continued political impasse, we think that the odds of a passage of the fiscal package has now fallen below 20%. If an agreement is not reached by the end of September, it will almost certainly not happen until next year,” said Bénédicte Lowe, cross asset strategist at BNP Paribas London, in a note to clients.

Drugmakers were among the worst performers, with shares of AstraZeneca /zigman2/quotes/200304487/composite AZN -0.75% /zigman2/quotes/203048482/delayed UK:AZN -1.43% , Sanofi /zigman2/quotes/206928357/delayed FR:SAN -0.10% and Novo Nordisk /zigman2/quotes/207193277/delayed DK:NOVO.B -0.06% /zigman2/quotes/203484366/composite NVO -0.21% all down around 1% or more.

Banks were also under pressure, with the Stoxx Europe 600 Banks Index /zigman2/quotes/210599339/delayed XX:SX7P +0.52% down 7% and in the grips of the fourth-straight losing session. Shares of heavily weighed BNP Paribas and UBS Group fell 2% each, while Crédit Agricole lose more than 3%.

Airlines were again under pressure, with shares of British Airways operator International Consolidated Airlines /zigman2/quotes/208070069/delayed UK:IAG -1.27% dropping 4%, and Deutsche Lufthansa /zigman2/quotes/203276698/delayed DE:LHAB -2.38% and Ryanair Holdings /zigman2/quotes/205429530/delayed IE:RY4C -3.17% down 2% each.

Technology names were also under pressure, with Infineon Technologies /zigman2/quotes/203152288/delayed XE:IFX -1.82% down 3%, while heavyweights SAP /zigman2/quotes/202053813/delayed XE:SAP +0.14% and ASML Holding /zigman2/quotes/210293876/composite ASML -3.50% fell 2% each.

/zigman2/quotes/210599654/delayed
XX : STOXX
413.23
+0.79 +0.19%
Volume: 0.00
March 2, 2021 11:03p
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/zigman2/quotes/210597999/delayed
DAX
DX : Xetra Indices
14,039.80
+26.98 +0.19%
Volume: 63,307
March 2, 2021 6:30p
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/zigman2/quotes/210597958/delayed
FR : France: Euronext Paris
5,809.73
+16.94 +0.29%
Volume: 78,464
March 2, 2021 6:05p
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/zigman2/quotes/210598409/delayed
UK : FTSE UK
6,613.75
+25.22 +0.38%
Volume: 656,176
March 2, 2021 4:58p
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/zigman2/quotes/208225921/composite
add Add to watchlist SP 500 FUTURES
US : U.S.: Nasdaq
$ 34.01
-0.15 -0.44%
Volume: 99,179
March 2, 2021 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$789.95 million
Rev. per Employee
$89,090
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/zigman2/quotes/210598065/realtime
add Add to watchlist DJIA FUTURES
US : Dow Jones Global
31,391.52
-143.99 -0.46%
Volume: 341.28M
March 2, 2021 5:08p
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/zigman2/quotes/210598365/realtime
add Add to watchlist NASDAQ 100 FUTURES
US : U.S.: Nasdaq
13,358.79
-230.04 -1.69%
Volume: 4.37M
March 2, 2021 5:16p
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/zigman2/quotes/200304487/composite
US : U.S.: Nasdaq
$ 47.73
-0.36 -0.75%
Volume: 14.26M
March 2, 2021 4:00p
P/E Ratio
38.94
Dividend Yield
2.87%
Market Cap
$127.71 billion
Rev. per Employee
$352,484
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/zigman2/quotes/203048482/delayed
UK : U.K.: London
6,880.00 p
-100.00 -1.43%
Volume: 2.74M
March 2, 2021 4:35p
P/E Ratio
36.31
Dividend Yield
3.01%
Market Cap
£91.63 billion
Rev. per Employee
£272,751
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/zigman2/quotes/206928357/delayed
FR : France: Euronext Paris
76.34
-0.08 -0.10%
Volume: 1.60M
March 2, 2021 5:38p
P/E Ratio
8.70
Dividend Yield
4.13%
Market Cap
€96.01 billion
Rev. per Employee
N/A
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/zigman2/quotes/207193277/delayed
DK : Denmark: OMX
kr. 448.30
-0.25 -0.06%
Volume: 1.79M
March 2, 2021 4:59p
P/E Ratio
24.90
Dividend Yield
2.03%
Market Cap
kr.1037.08 billion
Rev. per Employee
kr.2.80M
loading...
/zigman2/quotes/203484366/composite
US : U.S.: NYSE
$ 72.68
-0.15 -0.21%
Volume: 492,744
March 2, 2021 4:00p
P/E Ratio
26.45
Dividend Yield
1.45%
Market Cap
$168.08 billion
Rev. per Employee
$428,322
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/zigman2/quotes/210599339/delayed
XX : STOXX
123.47
+0.64 +0.52%
Volume: 0.00
March 2, 2021 11:03p
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/zigman2/quotes/208070069/delayed
UK : U.K.: London
202.70 p
-2.60 -1.27%
Volume: 34.40M
March 2, 2021 4:35p
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
£10.21 billion
Rev. per Employee
N/A
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/zigman2/quotes/203276698/delayed
DE : Germany: Frankfurt
12.30
-0.30 -2.38%
Volume: 7,983
March 2, 2021 8:59p
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
€7.57 billion
Rev. per Employee
€263,269
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/zigman2/quotes/205429530/delayed
IE : Ireland: Dublin
16.37
-0.54 -3.17%
Volume: 1.29M
March 2, 2021 4:30p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
€19.06 billion
Rev. per Employee
€491,939
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/zigman2/quotes/203152288/delayed
XE : Germany: Xetra
35.09
-0.65 -1.82%
Volume: 5.37M
March 2, 2021 6:30p
P/E Ratio
113.99
Dividend Yield
0.63%
Market Cap
€46.48 billion
Rev. per Employee
€183,585
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/zigman2/quotes/202053813/delayed
XE : Germany: Xetra
103.50
+0.14 +0.14%
Volume: 2.28M
March 2, 2021 6:30p
P/E Ratio
23.78
Dividend Yield
1.53%
Market Cap
€121.92 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/210293876/composite
US : U.S.: Nasdaq
$ 563.14
-20.41 -3.50%
Volume: 696,344
March 2, 2021 4:00p
P/E Ratio
57.42
Dividend Yield
0.50%
Market Cap
$241.42 billion
Rev. per Employee
$567,632
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