European stocks losses intensify as investors weigh up stimulus plans and oil slides

By Barbara Kollmeyer, MarketWatch

Reuters

Some merchants from the Porta Palazzo market, Turin, improvise a flash mob by singing the Italian anthem and waving Italian flags to celebrate the 159th anniversary of the unification of Italy on March 17, 2020.

Losses compounded for European stock markets on Wednesday, as oil prices slumped and investors fretted that plans by governments to prevent economic collapse from the coronavirus pandemic are lacking.

The Stoxx Europe 600 index /zigman2/quotes/210599654/delayed XX:SXXP +1.66%  fell 4.8% to 276.97, after closing up 2.3% on Tuesday. The German DAX 30 index /zigman2/quotes/210597999/delayed DX:DAX +2.45%  slumped 5.4%, the French CAC 40 index /zigman2/quotes/210597958/delayed FR:PX1 +1.73%  dropped 5.6% and the FTSE 100 index /zigman2/quotes/210598409/delayed UK:UKX +1.26%  dropped nearly 5%.

Losses were less pronounced in Spain and Italy, where the IBEX 35 index /zigman2/quotes/210597995/delayed XX:IBEX +1.43%  and the FTSE MIB Italy index /zigman2/quotes/210598024/delayed IT:I945 +1.73%  fell 3% each.

That is as Dow Jones Industrial Average futures /zigman2/quotes/210407078/delayed YM00 +1.19%   hit the lower limits of trading , where they have remained for hours, down 821 points, or nearly 4%, to 20,039.

Fresh losses came after Tuesday’s upbeat session, as global governments announced pledges to shore up economies against the coronavirus pandemic. But investors remained jittery that global leaders are doing enough. U.S. Treasury Secretary Steven Mnuchin warned late on Tuesday that the U.S. jobless rate could climb to 20% without government action, Bloomberg reported.

The EU announced it will curb most foreign travel for 30 days to stop the virus’s spread, and the U.K. may this week announce its own emergency measures to close ports and airports.

The U.K. announced an unprecedented £330 billion ($397 billion) package to protect businesses and measures to support individuals hit by the pandemic. Measures have also been announced in hard-hit countries like Italy and Spain, which on Tuesday announced a €200 billion relief package to help businesses and individuals.

U.S. stocks rebounded on Tuesday, following White House support for an economic stimulus plan and the Federal Reserve’s moves to provide short-term funding for businesses affected by the coronavirus outbreak.

Read: Trapped in no-man’s-land of coronavirus restrictions, some of Britain’s small businesses are wasting away

The biggest drain on markets was coming from tumbling oil prices, which fell to a 17-year low on Wednesday.

West Texas Intermediate crude for April delivery /zigman2/quotes/211629951/delayed CL.1 -0.70% on the New York Mercantile Exchange slid $1.68, or 6.2%, to $25.27 a barrel after hitting its lowest level since April 2003. May Brent crude dropped $1.07, or 3.8%, at $27.66, after trading at its weakest since January 2016.

Oil has broken the oil-supply glut support of $25.06, which previous provided a safety net, said Naeem Aslam, chief market analyst at AvaTrade, in a note to clients. “The selloff is extremely intense now and if Saudi Arabia and Russia don’t get their act together, we could see it falling all the way to $22,” he said, in reference to the oil-price war between those countries that has routed oil prices.

Shares of BP /zigman2/quotes/207305210/composite BP -0.39%   /zigman2/quotes/202286639/delayed UK:BP +0.30%  and Royal Dutch Shell Group /zigman2/quotes/205095589/composite RDS.A -3.01%   /zigman2/quotes/206428183/delayed UK:RDSA -0.83%  made clear the pain being felt by the sector, with those shares down over 8% each. Airlines again took a huge nosedive, with easyJet /zigman2/quotes/202825892/delayed UK:EZJ +2.49%  sliding 17%.

Telecommunications companies were among the gainers in Europe, with Telefónica /zigman2/quotes/207034643/composite TEF -0.57%   /zigman2/quotes/200416613/delayed ES:TEF -0.14%  up 7.7% and Orange /zigman2/quotes/201008076/delayed FR:ORA +0.83%  up 6%.

Drugmakers were under pressure, with shares of Roche Holding /zigman2/quotes/206324342/delayed CH:ROG -0.76%  down over 5%, AstraZeneca /zigman2/quotes/203048482/delayed UK:AZN +0.05% , /zigman2/quotes/200304487/composite AZN +2.47%  Sanofi /zigman2/quotes/201967021/composite SNY -0.02% /zigman2/quotes/206928357/delayed FR:SAN +1.03%  and GlaxoSmithKline /zigman2/quotes/209463850/composite GSK +1.12%   /zigman2/quotes/200381158/delayed UK:GSK -0.58%  all posting losses of 4% or more.

On the upside, grocers were climbing as individuals continue to put emphasis on stocking up while lockdowns spread across Europe. Shares of Marks & Spencer Group /zigman2/quotes/206225481/delayed UK:MKS +4.09% rose 11%, J. Sainsbury /zigman2/quotes/206038250/delayed UK:SBRY +0.18% climbed 10% and Wm Morrison Supermarkets /zigman2/quotes/205533138/delayed UK:MRW +0.55%  rose 8%.

/zigman2/quotes/210599654/delayed

Add to watchlist XX:SXXP

STOXX Europe 600 Index

XX : STOXX

361.42

+5.91 +1.66%

Volume: 0.00

Sept. 28, 2020 12:02p

/zigman2/quotes/210597999/delayed

Add to watchlist DX:DAX

DAX

DX : Xetra Indices

12,774.36

+305.16 +2.45%

Volume: 21,912

Sept. 28, 2020 12:02p

/zigman2/quotes/210597958/delayed

Add to watchlist FR:PX1

CAC 40 Index

FR : France: Euronext Paris

4,811.71

+82.05 +1.73%

Volume: 23,807

Sept. 28, 2020 12:02p

/zigman2/quotes/210598409/delayed

Add to watchlist UK:UKX

FTSE 100 Index

UK : FTSE UK

5,916.30

+73.63 +1.26%

Volume: 227,251

Sept. 28, 2020 11:02a

/zigman2/quotes/210597995/delayed

Add to watchlist XX:IBEX

IBEX 35 Index

XX : Spain: Madrid

6,723.40

+95.10 +1.43%

Volume: 65.99M

Sept. 28, 2020 12:01p

/zigman2/quotes/210598024/delayed

Add to watchlist IT:I945

FTSE MIB Index

IT : Borsa Italiana

19,021.11

+322.75 +1.73%

Volume: 0.00

Sept. 28, 2020 12:02p

/zigman2/quotes/210407078/delayed

Add to watchlist YM00

E-Mini Dow Continuous Contract

US : U.S.: CBOT

$ 27,366.00

+323.00 +1.19%

Volume: 32,548

Sept. 28, 2020 5:07a

/zigman2/quotes/211629951/delayed

Add to watchlist CL.1

Crude Oil WTI (NYM $/bbl) Front Month

US : U.S.: Nymex

$ 39.97

-0.28 -0.70%

Volume: 40,087

Sept. 28, 2020 6:07a

/zigman2/quotes/207305210/composite

Add to watchlist BP

BP PLC ADR

US : U.S.: NYSE

$ 17.86

-0.07 -0.39%

Volume: 14.53M

Sept. 25, 2020 4:00p

P/E Ratio

N/A

Dividend Yield

12.15%

Market Cap

$59.58 billion

Rev. per Employee

$4.03M

/zigman2/quotes/202286639/delayed

Add to watchlist UK:BP

BP PLC

UK : U.K.: London

234.00 p

+0.70 +0.30%

Volume: 6.15M

Sept. 28, 2020 11:01a

P/E Ratio

N/A

Dividend Yield

7.06%

Market Cap

£46.90 billion

Rev. per Employee

N/A

/zigman2/quotes/205095589/composite

Add to watchlist RDS.A

Royal Dutch Shell PLC ADR Cl A

US : U.S.: NYSE

$ 25.74

-0.80 -3.01%

Volume: 9.61M

Sept. 25, 2020 4:00p

P/E Ratio

N/A

Dividend Yield

8.32%

Market Cap

$97.82 billion

Rev. per Employee

$4.75M

/zigman2/quotes/206428183/delayed

Add to watchlist UK:RDSA

Royal Dutch Shell PLC A

UK : U.K.: London

£ 996.50

-8.30 -0.83%

Volume: 822,582

Sept. 28, 2020 11:02a

P/E Ratio

N/A

Dividend Yield

0.05%

Market Cap

£77.00 billion

Rev. per Employee

N/A

/zigman2/quotes/202825892/delayed

Add to watchlist UK:EZJ

easyJet PLC

UK : U.K.: London

498.30 p

+12.10 +2.49%

Volume: 972,767

Sept. 28, 2020 11:01a

P/E Ratio

8.20

Dividend Yield

8.81%

Market Cap

£2.21 billion

Rev. per Employee

N/A

/zigman2/quotes/207034643/composite

Add to watchlist TEF

Telefonica S.A. ADR

US : U.S.: NYSE

$ 3.48

-0.02 -0.57%

Volume: 2.00M

Sept. 25, 2020 4:00p

P/E Ratio

N/A

Dividend Yield

9.28%

Market Cap

$18.06 billion

Rev. per Employee

$468,110

/zigman2/quotes/200416613/delayed

Add to watchlist ES:TEF

Telefonica S.A.

ES : Spain: Madrid

€ 2.96

-0.0040 -0.14%

Volume: 5.09M

Sept. 28, 2020 12:01p

P/E Ratio

N/A

Dividend Yield

10.96%

Market Cap

€15.54 billion

Rev. per Employee

€396,788

/zigman2/quotes/201008076/delayed

Add to watchlist FR:ORA

Orange

FR : France: Euronext Paris

€ 8.96

+0.07 +0.83%

Volume: 1.70M

Sept. 28, 2020 12:01p

P/E Ratio

8.25

Dividend Yield

5.58%

Market Cap

€23.63 billion

Rev. per Employee

N/A

/zigman2/quotes/206324342/delayed

Add to watchlist CH:ROG

Roche Holding AG

CH : Switzerland: SWX

CHF 328.45

-2.50 -0.76%

Volume: 455,640

Sept. 28, 2020 12:02p

P/E Ratio

21.95

Dividend Yield

2.74%

Market Cap

CHF282.82 billion

Rev. per Employee

CHF601,914

/zigman2/quotes/203048482/delayed

Add to watchlist UK:AZN

AstraZeneca PLC

UK : U.K.: London

8,580.00 p

+4.00 +0.05%

Volume: 337,163

Sept. 28, 2020 11:01a

P/E Ratio

66.05

Dividend Yield

2.52%

Market Cap

£112.54 billion

Rev. per Employee

N/A

/zigman2/quotes/200304487/composite

Add to watchlist AZN

AstraZeneca PLC ADR

US : U.S.: Nasdaq

$ 55.51

+1.34 +2.47%

Volume: 4.96M

Sept. 25, 2020 4:00p

P/E Ratio

67.70

Dividend Yield

2.47%

Market Cap

$142.98 billion

Rev. per Employee

$342,432

/zigman2/quotes/201967021/composite

Add to watchlist SNY

Sanofi ADR

US : U.S.: Nasdaq

$ 50.78

-0.01 -0.02%

Volume: 714,665

Sept. 25, 2020 4:00p

P/E Ratio

10.40

Dividend Yield

2.31%

Market Cap

$126.43 billion

Rev. per Employee

$390,092

/zigman2/quotes/206928357/delayed

Add to watchlist FR:SAN

Sanofi S.A.

FR : France: Euronext Paris

€ 87.50

+0.89 +1.03%

Volume: 318,136

Sept. 28, 2020 12:02p

P/E Ratio

9.88

Dividend Yield

3.60%

Market Cap

€108.81 billion

Rev. per Employee

€330,656

/zigman2/quotes/209463850/composite

Add to watchlist GSK

GlaxoSmithKline PLC ADR

US : U.S.: NYSE

$ 37.80

+0.42 +1.12%

Volume: 3.28M

Sept. 25, 2020 4:00p

P/E Ratio

16.01

Dividend Yield

5.33%

Market Cap

$93.24 billion

Rev. per Employee

$430,379

/zigman2/quotes/200381158/delayed

Add to watchlist UK:GSK

GlaxoSmithKline PLC

UK : U.K.: London

1,465.80 p

-8.60 -0.58%

Volume: 886,117

Sept. 28, 2020 11:02a

P/E Ratio

11.01

Dividend Yield

5.46%

Market Cap

£73.39 billion

Rev. per Employee

N/A

/zigman2/quotes/206225481/delayed

Add to watchlist UK:MKS

Marks & Spencer Group PLC

UK : U.K.: London

97.84 p

+3.84 +4.09%

Volume: 2.67M

Sept. 28, 2020 11:01a

P/E Ratio

63.12

Dividend Yield

3.99%

Market Cap

£1.83 billion

Rev. per Employee

N/A

/zigman2/quotes/206038250/delayed

Add to watchlist UK:SBRY

J Sainsbury PLC

UK : U.K.: London

197.60 p

+0.35 +0.18%

Volume: 1.16M

Sept. 28, 2020 11:00a

P/E Ratio

33.89

Dividend Yield

1.67%

Market Cap

£4.37 billion

Rev. per Employee

N/A

/zigman2/quotes/205533138/delayed

Add to watchlist UK:MRW

Wm. Morrison Supermarkets PLC

UK : U.K.: London

174.10 p

+0.95 +0.55%

Volume: 552,206

Sept. 28, 2020 11:01a

P/E Ratio

16.00

Dividend Yield

3.95%

Market Cap

£4.16 billion

Rev. per Employee

N/A