Bulletin
Investor Alert

Europe Markets Archives | Email alerts

Jan. 15, 2021, 11:08 a.m. EST

European stocks fall as Biden’s stimulus plan fails to cheer COVID-19 worried investors

new
Watchlist Relevance
LEARN MORE

Want to see how this story relates to your watchlist?

Just add items to create a watchlist now:

  • X
    STOXX Europe 600 Index (SXXP)
  • X
    DAX (DAX)
  • X
    CAC 40 Index (PX1)

or Cancel Already have a watchlist? Log In

By Barbara Kollmeyer

European stocks fell on Friday as the announcement of a highly anticipated stimulus plan from President-elect Joe Biden failed to cheer investors, who remain concerned over climbing COVID-19 cases on both sides of the Atlantic.

The Stoxx Europe 600 index /zigman2/quotes/210599654/delayed XX:SXXP +0.46% fell 0.9% in a week that has seen it drop around 1%. The German DAX /zigman2/quotes/210597999/delayed DX:DAX +0.46% and French CAC /zigman2/quotes/210597958/delayed FR:PX1 +0.71% dropped 1.2% each and the FTSE 100 /zigman2/quotes/210598409/delayed UK:UKX +0.20% traded 1% lower. The euro /zigman2/quotes/210561242/realtime/sampled EURUSD +0.1720% and pound /zigman2/quotes/210561263/realtime/sampled GBPUSD -0.2610% were both weaker against the dollar.

Biden announced a $1.9 trillion coronavirus relief plan that includes increasing direct cash payments to Americans to $2,000 and money for distributing COVID-19 vaccines. U.S. stocks were under pressure in early trading as data also showed retail sales fell a third straight month.

“The President-elect also made clear that he would be laying a second, broader economic recovery plan in February at a joint session of Congress. That plan will lay out infrastructure spending and plans to attack climate change. It seems it will also lay out tax raising plans which is catching the market off guard a little this morning,” said a team of strategists at Deutsche Bank led by Jim Reid.

Investors are grappling with a third wave of COVID-19 cases, and concerns as even China finds itself dealing with a resurgence in cases and hospitalizations. The U.S. now has a quarter of the global tally of new cases, or 23 million infections.

In Europe, France will impose a nationwide 6 p.m. curfew on Saturday , with initial plans for 15 days to battle climbing cases. Spain reported 38,869 new coronavirus infections on Wednesday , the highest on record and three times the worst level seen in the first wave, with hospitalizations rising.

“There is renewed enthusiasm about the U.S. due to the prospects for more stimulus and the new administration’s pledge to focus on the vaccinations’ rollout. Meanwhile, Europe recovery is throttled by additional lockdowns and a fumbled vaccine rollout program,” said Stephen Innes, chief global markets strategist at Axi, in a note to clients.

The U.K.’s Office for National Statistics reported that the country’s economy shrank 2.6% in November, after six straight months of growth since lockdowns in the spring. But that was less than the 4% drop forecast by economists polled by The Wall Street Journal.

Friday’s selloff was focused on companies that are geared toward economic recoveries, such as commodity plays. Oil prices, which have also benefited from the rally, fell over 1%, dragging down shares of heavily weighted BP /zigman2/quotes/202286639/delayed UK:BP -0.34% /zigman2/quotes/207305210/composite BP +0.24% , Royal Dutch Shell /zigman2/quotes/205095589/composite RDS.A -0.33% /zigman2/quotes/206428183/delayed UK:RDSA -0.40% down more than 1% each and Total off 2.7%. And big mining stocks such as Rio Tinto /zigman2/quotes/208934945/delayed UK:RIO +0.51% /zigman2/quotes/202627887/composite RIO +0.52% were also under pressure.

Earning season is slowly revving up in the U.S. and Europe, with JPMorgan /zigman2/quotes/205971034/composite JPM +1.35% among the big banks that reported on Friday. The bank’s shares fell 2.5% even after results topped estimates .

Read: Expect another quarter of big earnings beats, as Wall Street estimates were likely overly depressed

An early gainer, SAP /zigman2/quotes/207905606/composite SAP +1.66% /zigman2/quotes/202053813/delayed XE:SAP +1.18% slipped into the red by afternoon. The German software giant pre-announced fourth-quarter results , reporting a sequential improvement “even as the COVID-19 crisis persisted and lockdowns were reintroduced in many regions.”

Carrefour’s /zigman2/quotes/208564127/delayed FR:CA -0.10% shares were again on the decline, dropping 3% after the French government voiced objections to prospects of a takeover for the supermarket owner when it and Canada’s Alimentation Couche-Tard  /zigman2/quotes/202354607/delayed CA:ATD.A +0.19% announced early-stage talks earlier in the week.

Shares of information-technology company Aveva /zigman2/quotes/202038414/delayed UK:AVV -1.58% surged 5.7%, after it said revenue growth rose in the first nine months of fiscal 2021 and that it was confident in its full-year outlook.

/zigman2/quotes/210599654/delayed
XX : STOXX
471.88
+2.17 +0.46%
Volume: 0.00
Oct. 22, 2021 11:03p
loading...
/zigman2/quotes/210597999/delayed
DAX
DX : Xetra Indices
15,542.98
+70.42 +0.46%
Volume: 49,948
Oct. 22, 2021 6:30p
loading...
/zigman2/quotes/210597958/delayed
FR : France: Euronext Paris
6,733.69
+47.52 +0.71%
Volume: 65,949
Oct. 22, 2021 6:05p
loading...
/zigman2/quotes/210598409/delayed
UK : FTSE UK
7,204.55
+14.25 +0.20%
Volume: 464,760
Oct. 22, 2021 4:57p
loading...
/zigman2/quotes/210561242/realtime/sampled
US : Tullett Prebon
1.1647
+0.0020 +0.1720%
Volume: 0.0000
Oct. 22, 2021 4:59p
loading...
/zigman2/quotes/210561263/realtime/sampled
US : Tullett Prebon
1.3758
-0.0036 -0.2610%
Volume: 0.0000
Oct. 22, 2021 4:59p
loading...
/zigman2/quotes/202286639/delayed
UK : U.K.: London
355.00 p
-1.20 -0.34%
Volume: 23.39M
Oct. 22, 2021 4:35p
P/E Ratio
11.50
Dividend Yield
4.47%
Market Cap
£70.80 billion
Rev. per Employee
£2.21M
loading...
/zigman2/quotes/207305210/composite
US : U.S.: NYSE
$ 29.51
+0.07 +0.24%
Volume: 8.10M
Oct. 22, 2021 4:00p
P/E Ratio
11.53
Dividend Yield
4.25%
Market Cap
$97.84 billion
Rev. per Employee
$2.84M
loading...
/zigman2/quotes/205095589/composite
US : U.S.: NYSE
$ 48.69
-0.16 -0.33%
Volume: 4.39M
Oct. 22, 2021 4:00p
P/E Ratio
34.44
Dividend Yield
2.61%
Market Cap
$188.20 billion
Rev. per Employee
$1.95M
loading...
/zigman2/quotes/206428183/delayed
UK : U.K.: London
£ 1,749.20
-7.00 -0.40%
Volume: 2.60M
Oct. 22, 2021 4:35p
P/E Ratio
35.35
Dividend Yield
0.04%
Market Cap
£136.17 billion
Rev. per Employee
£1.52M
loading...
/zigman2/quotes/208934945/delayed
UK : U.K.: London
4,672.50 p
+23.50 +0.51%
Volume: 2.36M
Oct. 22, 2021 4:35p
P/E Ratio
5.51
Dividend Yield
13.40%
Market Cap
£77.47 billion
Rev. per Employee
£732,787
loading...
/zigman2/quotes/202627887/composite
US : U.S.: NYSE
$ 65.88
+0.34 +0.52%
Volume: 3.57M
Oct. 22, 2021 4:00p
P/E Ratio
5.75
Dividend Yield
10.39%
Market Cap
$107.06 billion
Rev. per Employee
$939,693
loading...
/zigman2/quotes/205971034/composite
US : U.S.: NYSE
$ 171.78
+2.28 +1.35%
Volume: 8.82M
Oct. 22, 2021 4:00p
P/E Ratio
10.87
Dividend Yield
2.33%
Market Cap
$506.49 billion
Rev. per Employee
$492,730
loading...
/zigman2/quotes/207905606/composite
US : U.S.: NYSE
$ 141.78
+2.32 +1.66%
Volume: 764,817
Oct. 22, 2021 4:00p
P/E Ratio
23.97
Dividend Yield
2.03%
Market Cap
$164.66 billion
Rev. per Employee
$304,253
loading...
/zigman2/quotes/202053813/delayed
XE : Germany: Xetra
121.28
+1.42 +1.18%
Volume: 2.06M
Oct. 22, 2021 6:30p
P/E Ratio
24.43
Dividend Yield
1.53%
Market Cap
€141.39 billion
Rev. per Employee
€266,894
loading...
/zigman2/quotes/208564127/delayed
FR : France: Euronext Paris
15.26
-0.02 -0.10%
Volume: 1.89M
Oct. 22, 2021 5:35p
P/E Ratio
12.84
Dividend Yield
3.15%
Market Cap
€11.89 billion
Rev. per Employee
€223,954
loading...
/zigman2/quotes/202354607/delayed
CA : Canada: Toronto
$ 48.65
+0.09 +0.19%
Volume: 7,097
Oct. 22, 2021 5:00p
P/E Ratio
15.53
Dividend Yield
0.72%
Market Cap
$51.90 billion
Rev. per Employee
$483,202
loading...
/zigman2/quotes/202038414/delayed
UK : U.K.: London
3,676.00 p
-59.00 -1.58%
Volume: 207,379
Oct. 22, 2021 4:35p
P/E Ratio
267.15
Dividend Yield
0.98%
Market Cap
£11.25 billion
Rev. per Employee
£174,553
loading...

This Story has 0 Comments
Be the first to comment
More News In
Markets

Story Conversation

Commenting FAQs »

Partner Center

World News from MarketWatch

Link to MarketWatch's Slice.