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July 1, 2020, 9:35 a.m. EDT

Mixed data weigh on European stocks, as well as U.S. virus worries

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By Barbara Kollmeyer, MarketWatch


AFP via Getty Images
People sunbathe at the main beach in Croatia’s northern resort of Opatija, on June 30, 2020.

Mixed economic data weighed on European stocks at the start of the third quarter on Wednesday, with concerns about the U.S. battle to get its coronavirus outbreak under control also troubling investors.

The Stoxx Europe 600 index /zigman2/quotes/210599654/delayed XX:SXXP -0.03% fell 0.3% in choppy trade to 359.11, after a modestly higher close on Tuesday. The index logged a 12.5% gain for the second quarter, the best percentage gain since the first quarter of 2015. But that comes after an extremely weak first quarter, as the coronavirus pandemic emerged.

The German DAX /zigman2/quotes/210597999/delayed DX:DAX +0.54%  fell 1%, with the French CAC 40 /zigman2/quotes/210597958/delayed FR:PX1 -0.27%  down 0.7% each and the FTSE 100 /zigman2/quotes/210598409/delayed UK:UKX +0.01% fell 0.5%.

“Going into the third quarter, the markets face more uncertainty. There is the potential for a new wave of coronavirus to emerge, even though the first wave is far from over given the situations in the U.S. and Latin America,” said Fawad Razaqzada, market analyst at Think Markets, in a note to clients.

“Stock investors will find out exactly how the lockdown hit company profits, with the second-quarter reporting season soon to kick off. Then there is the ongoing trade friction between the U.S. and China to deal with, not to mention other geopolitical risks. Meanwhile, the impact of vast stimulus programs announced by governments and central banks during the height of the pandemic will diminish,” he said.

German unemployment data showed 627,000 people filed in May, a 48.5% gain on the year-ago period, as the Ifo Institute predicted a slow recovery for the economy. That comes amid news that pan-European aerospace giant Airbus /zigman2/quotes/208224336/delayed FR:AIR -2.18%  plans to ax 15,000 jobs.

Elsewhere, the final eurozone manufacturing purchasing manager index (PMI) rose to 47.4 in June, from a previous estimate of 46.9 and a May level of 39.4. The data add further to signs that “the eurozone factories are seeing a strong initial recovery as the economy lifts from COVID-19 lockdowns,” said Chris Williamson, chief business economist at IHS, in a press release.

Sentiment also rebounded sharply, but Williamson said production and sentiment remain below pre-pandemic peaks, and weak demand and social distancing will keep dragging on the recovery. And Italy and Spain’s economies, while improving, still came in below the key 50.0 level that indicates expansion.

The Caixin China manufacturing PMI climbed to a six-month high of 51.2 in June from 50.7 in May. That data provide “further evidence that the world’s second-biggest economy has some serious momentum behind it,” said Naeem Aslam, chief market analyst at AvaTrade.

Dow Jones Industrial Average futures /zigman2/quotes/210407078/delayed YM00 -0.49%  swung from losses to gains, a day after the Dow /zigman2/quotes/210598065/realtime DJIA +0.13%  and the S&P 500 /zigman2/quotes/210599714/realtime SPX +0.24%  closed out the second quarter with the best performance in more than 20 years.

Caution was setting in ahead of a rush of U.S. data to be released before Friday’s July 4 holiday in the U.S. Wednesday’s ADP national employment data showed 2.37 million private-sector jobs were added in June, slightly below expectations. Economists expect Thursday’s jobs data to show an employment gain of 3 million, after a surprising 2.5 million increase in May.

Among stocks on the move, oil companies were moving higher as U.S. crude oil  and Brent crude prices  climbed over 2%, after the American Petroleum Institute reported late on Tuesday that U.S. crude supplies fell by 8.2 million barrels for the week ended June 26, according to sources.

Shares of BP /zigman2/quotes/207305210/composite BP -1.45% /zigman2/quotes/202286639/delayed UK:BP -2.62%  rose 1.7% and Royal Dutch Shell Group /zigman2/quotes/205095589/composite RDS.A -0.19%   /zigman2/quotes/207682964/composite RDS.B +0.20%  rose 0.9%.

Shares of Clariant /zigman2/quotes/208575719/delayed CH:CLN +0.65%  rose 7%, after the Swiss chemical group said it completed a $1.6 billion sale of its Masterbatches business to polymer materials maker PolyOne

Shares of German insurer Allianz /zigman2/quotes/205544832/delayed DE:ALV +0.72%  fell 1.3%. French food giant Danone /zigman2/quotes/205561941/delayed FR:BN +0.53%  fell 1.6% and banking group BNP Paribas /zigman2/quotes/206351084/delayed FR:BNP -1.45%  dropped 1.3%.

/zigman2/quotes/210599654/delayed
XX : STOXX
393.11
-0.12 -0.03%
Volume: 0.00
Nov. 30, 2020 2:04p
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/zigman2/quotes/210597999/delayed
DAX
DX : Xetra Indices
13,407.80
+72.12 +0.54%
Volume: 25,336
Nov. 30, 2020 2:04p
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/zigman2/quotes/210597958/delayed
FR : France: Euronext Paris
5,582.80
-15.38 -0.27%
Volume: 29,357
Nov. 30, 2020 2:04p
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/zigman2/quotes/210598409/delayed
UK : FTSE UK
6,368.39
+0.81 +0.01%
Volume: 251,262
Nov. 30, 2020 1:04p
loading...
/zigman2/quotes/208224336/delayed
FR : France: Euronext Paris
88.04
-1.96 -2.18%
Volume: 1.05M
Nov. 30, 2020 2:04p
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
€70.53 billion
Rev. per Employee
€522,326
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/zigman2/quotes/210407078/delayed
US : U.S.: CBOT
$ 29,729.00
-145.00 -0.49%
Volume: 45,366
Nov. 30, 2020 7:09a
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/zigman2/quotes/210598065/realtime
US : Dow Jones Global
29,910.37
+37.90 +0.13%
Volume: 178.10M
Nov. 27, 2020 2:07p
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/zigman2/quotes/210599714/realtime
US : S&P US
3,638.35
+8.70 +0.24%
Volume: 1.22B
Nov. 27, 2020 2:07p
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/zigman2/quotes/207305210/composite
US : U.S.: NYSE
$ 21.10
-0.31 -1.45%
Volume: 9.84M
Nov. 27, 2020 5:00p
P/E Ratio
N/A
Dividend Yield
8.86%
Market Cap
$70.54 billion
Rev. per Employee
$3.99M
loading...
/zigman2/quotes/202286639/delayed
UK : U.K.: London
256.00 p
-6.90 -2.62%
Volume: 16.37M
Nov. 30, 2020 1:04p
P/E Ratio
N/A
Dividend Yield
6.15%
Market Cap
£52.86 billion
Rev. per Employee
£3.11M
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/zigman2/quotes/205095589/composite
US : U.S.: NYSE
$ 36.27
-0.07 -0.19%
Volume: 2.60M
Nov. 27, 2020 5:00p
P/E Ratio
N/A
Dividend Yield
4.48%
Market Cap
$137.38 billion
Rev. per Employee
$4.11M
loading...
/zigman2/quotes/207682964/composite
US : U.S.: NYSE
$ 34.96
+0.07 +0.20%
Volume: 2.66M
Nov. 27, 2020 5:00p
P/E Ratio
N/A
Dividend Yield
5.47%
Market Cap
$137.38 billion
Rev. per Employee
$4.11M
loading...
/zigman2/quotes/208575719/delayed
CH : Switzerland: SWX
CHF 18.50
+0.12 +0.65%
Volume: 395,840
Nov. 30, 2020 2:03p
P/E Ratio
31.16
Dividend Yield
16.22%
Market Cap
CHF6.05 billion
Rev. per Employee
CHF255,414
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/zigman2/quotes/205544832/delayed
DE : Germany: Frankfurt
199.34
+1.42 +0.72%
Volume: 2,064
Nov. 30, 2020 1:50p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
N/A
Rev. per Employee
€707,118
loading...
/zigman2/quotes/205561941/delayed
FR : France: Euronext Paris
53.06
+0.28 +0.53%
Volume: 653,493
Nov. 30, 2020 2:04p
P/E Ratio
18.19
Dividend Yield
3.96%
Market Cap
€34.27 billion
Rev. per Employee
€246,406
loading...
/zigman2/quotes/206351084/delayed
FR : France: Euronext Paris
43.19
-0.64 -1.45%
Volume: 1.35M
Nov. 30, 2020 2:04p
P/E Ratio
7.79
Dividend Yield
0.00%
Market Cap
€54.68 billion
Rev. per Employee
€563,827
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Barbara Kollmeyer is an editor for MarketWatch in Madrid. Follow her on Twitter @bkollmeyer.

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