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June 4, 2020, 10:03 a.m. EDT

Stocks in Europe slip ahead of ECB decision

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By Steve Goldstein, MarketWatch


Getty Images
People enjoy a drink on a terrace with plexiglass protective barriers on June 3, 2020, in Madrid, Spain. Spain has largely ended the lockdown it imposed to curb the spread of COVID-19, which caused the deaths of more than 27,000 people across the country.

European stocks traded lower, with aggressive action from the European Central Bank not enough to keep equities higher after a strong run.

Having bounced 32% from the March lows, the Stoxx 600 /zigman2/quotes/210599654/delayed XX:SXXP +0.19%  

The German DAX /zigman2/quotes/210597999/delayed DX:DAX +0.17%  , the French CAC 40 /zigman2/quotes/210597958/delayed FR:PX1 +0.08%  and the U.K. FTSE 100 /zigman2/quotes/210598409/delayed UK:UKX +0.35%  

The ECB opted to expand its pandemic emergency purchase program by €600 billion rather than the €500 billion consensus as it also said it would reinvest the proceeds of maturing securities and extended the expiration date of the program.

“The ECB delivered even more than expected both with the size of the add-on to the PEPP and the extension of the program to June 2021,” said Esty Dwek, head of market strategy at Natixis Investment Solutions.

“In our view, this is yet another step in support of more cooperation across Europe and can only be welcomed by markets. It should be good for risk assets, and should support the recent rally of European assets as they play catch up with the U.S.”

The ECB move did lower Italian bond yields /zigman2/quotes/211347230/realtime BX:TMBMKIT-10Y +2.72%  even if the gain in stocks didn’t last.

French conglomerate LVMH Moët Hennessy Louis Vuitton /zigman2/quotes/201350549/delayed FR:MC -0.67%  shares slipped 1.5% after saying “on this occasion” it is not considering buying luxury retailer Tiffany /zigman2/quotes/209249105/composite TIF -0.49%  shares “on the market” after a board meeting. Women’s Wear Daily has reported that LVMH’s planned takeover of Tiffany was in jeopardy.

Spirits maker Rémy Cointreau /zigman2/quotes/206802273/delayed FR:RCO -0.86%  rallied 10% as the company said it expects a strong second half of the year and presented its longer-term goals that include an operating margin of 33% by 2030. Its fiscal year ending March profit slumped 29% on a 21% operating margin.

Lookers /zigman2/quotes/207240651/delayed UK:LOOK 0.00%  shares rose nearly 9% as the U.K. and Ireland car dealership chain said it would cut up to 1,500 jobs. Separately, U.K. car sales plunged 89% in May, a trade group reported.

/zigman2/quotes/210599654/delayed
XX : STOXX
364.32
+0.68 +0.19%
Volume: 0.00
July 10, 2020 11:31a
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/zigman2/quotes/210597999/delayed
DAX
DX : Xetra Indices
12,510.45
+20.99 +0.17%
Volume: 18,155
July 10, 2020 11:31a
loading...
/zigman2/quotes/210597958/delayed
FR : France: Euronext Paris
4,924.81
+3.80 +0.08%
Volume: 21,040
July 10, 2020 11:31a
loading...
/zigman2/quotes/210598409/delayed
UK : FTSE UK
6,071.04
+21.42 +0.35%
Volume: 167,310
July 10, 2020 10:31a
loading...
/zigman2/quotes/211347230/realtime
add Add to watchlist BX:TMBMKIT-10Y
BX : Tullett Prebon
1.25
+0.03 +2.72%
Volume: 0.00
July 10, 2020 11:46a
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/zigman2/quotes/201350549/delayed
FR : France: Euronext Paris
398.25
-2.70 -0.67%
Volume: 102,385
July 10, 2020 11:31a
P/E Ratio
27.99
Dividend Yield
1.21%
Market Cap
€201.20 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/209249105/composite
US : U.S.: NYSE
$ 120.99
-0.59 -0.49%
Volume: 1.17M
July 9, 2020 4:03p
P/E Ratio
41.72
Dividend Yield
1.92%
Market Cap
$14.75 billion
Rev. per Employee
$312,824
loading...
/zigman2/quotes/206802273/delayed
FR : France: Euronext Paris
126.30
-1.10 -0.86%
Volume: 15,376
July 10, 2020 11:29a
P/E Ratio
61.85
Dividend Yield
0.79%
Market Cap
€6.33 billion
Rev. per Employee
€596,239
loading...
/zigman2/quotes/207240651/delayed
UK : U.K.: London
21.00 p
0.00 0.00%
Volume: 0.00
July 1, 2020 7:30a
P/E Ratio
3.38
Dividend Yield
19.43%
Market Cap
£81.93 million
Rev. per Employee
N/A
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Steve Goldstein is MarketWatch markets editor for Europe. Follow him on Twitter: @MKTWgoldstein.

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