By Callum Keown
European stocks dipped on Thursday despite positive U.S. jobless claims data as trade disputes were thrown back into the spotlight.
The pan-European Stoxx 600 /zigman2/quotes/210599654/delayed XX:SXXP +0.72% fell 0.5%, while the German DAX /zigman2/quotes/210597999/delayed DX:DAX +0.77% was 0.5% lower and the French CAC /zigman2/quotes/210597958/delayed FR:PX1 +0.53% was 0.5% down.
The FTSE 100 /zigman2/quotes/210598409/delayed UK:UKX +0.41% , which surged 2% on Wednesday despite the U.K. economy’s record plunge in the second quarter, was 1.4% down. U.S. stocks /zigman2/quotes/210598065/realtime DJIA +0.83% /zigman2/quotes/210599714/realtime SPX +1.39% /zigman2/quotes/210598365/realtime COMP +1.97% were mixed at the open after better-than-expected U.S. jobless claims data. Initial claims for unemployment benefits declined to 963,000—the lowest number since the pandemic took hold. Economists had expected 1.1 million new claims.
The positive sentiment failed to travel across to Europe and the deadlock over another round of U.S. stimulus also weighed on sentiment, as President Donald Trump said a deal is “not going to happen.”
With the U.S.-China tensions bubbling in the background and officials from both countries due to meet on Saturday to review their trade deal, the U.S. turned its attention to Europe.
The Office of the U.S. Trade Representative said tariffs on European Union products, including whiskey and Airbus /zigman2/quotes/208224336/delayed FR:AIR +1.22% aircraft, will remain unchanged , despite efforts by the plane maker to comply with a World Trade Organization decision over state aid.
The U.S. raised tariffs on €7.5 billion of EU products last year as retaliation for subsidies provided to Airbus. American officials had also threatened to raise tariffs or add new products this summer. Spreadex analyst Connor Campbell said the fact it “failed to escalate the situation with fresh tariffs on vodka, gin and beer” prevented a market selloff.
Tui /zigman2/quotes/207049334/delayed UK:TUI +4.69% shares fell 5%, after the travel operator swung to a €1.4 billion loss in the third quarter as the coronavirus pandemic continued to hit the company. The hotel, airline and cruise operator said dividend payments and share buybacks will be restricted to the term of the €1.2 billion stabilization package announced on Wednesday with the German government.
Thyssenkrupp /zigman2/quotes/208475822/delayed XE:TKA -0.39% stock plunged 16% as the German industrial conglomerate posted a widened net loss of €678 million in the third quarter and said orders declined 35%.
Carlsberg /zigman2/quotes/206906043/delayed DK:CARL.A +1.31% stock slipped 5.8%, as the Danish brewer said it expected operating profit to fall 10% to 15% this year. It also warned demand would remain under pressure in China in the second half and that European sales wouldn’t return to normal this year.