AVN 67.75 Decreased By ▼ -0.73 (-1.07%)
BAFL 30.82 Decreased By ▼ -0.18 (-0.58%)
BOP 4.84 Decreased By ▼ -0.07 (-1.43%)
CNERGY 3.75 No Change ▼ 0.00 (0%)
DFML 14.05 Decreased By ▼ -0.18 (-1.26%)
DGKC 41.04 Decreased By ▼ -0.60 (-1.44%)
EPCL 47.21 Increased By ▲ 1.84 (4.06%)
FCCL 11.58 Decreased By ▼ -0.13 (-1.11%)
FFL 5.11 Increased By ▲ 0.01 (0.2%)
FLYNG 5.95 Increased By ▲ 0.10 (1.71%)
GGL 11.17 Increased By ▲ 0.76 (7.3%)
HUBC 67.68 Decreased By ▼ -0.82 (-1.2%)
HUMNL 5.71 Decreased By ▼ -0.04 (-0.7%)
KAPCO 28.03 Decreased By ▼ -0.19 (-0.67%)
KEL 2.28 Increased By ▲ 0.02 (0.88%)
LOTCHEM 26.25 Increased By ▲ 1.15 (4.58%)
MLCF 21.58 No Change ▼ 0.00 (0%)
NETSOL 86.53 Decreased By ▼ -1.82 (-2.06%)
OGDC 99.78 Increased By ▲ 0.48 (0.48%)
PAEL 11.08 Decreased By ▼ -0.03 (-0.27%)
PIBTL 4.23 No Change ▼ 0.00 (0%)
PPL 80.05 Decreased By ▼ -2.40 (-2.91%)
PRL 13.26 Decreased By ▼ -0.08 (-0.6%)
SILK 0.90 No Change ▼ 0.00 (0%)
SNGP 43.75 Decreased By ▼ -0.63 (-1.42%)
TELE 6.08 Decreased By ▼ -0.10 (-1.62%)
TPLP 15.88 Increased By ▲ 0.07 (0.44%)
TRG 121.33 Increased By ▲ 1.58 (1.32%)
UNITY 14.04 Decreased By ▼ -0.06 (-0.43%)
WTL 1.31 Increased By ▲ 0.05 (3.97%)
BR100 4,181 Increased By 9.7 (0.23%)
BR30 15,270 Increased By 16.5 (0.11%)
KSE100 41,723 Increased By 200.6 (0.48%)
KSE30 15,746 Increased By 83 (0.53%)

European stocks, dollar slide awaiting US stimulus

  • Sterling won support also from a rise in UK inflation, while oil prices dropped by almost two percent.
Published October 21, 2020
Follow us

LONDON: European stock markets slid and the dollar faltered Wednesday following a mixed performance in Asia, as investors continue to wait on a US stimulus package.

The pound was upbeat thanks to hopes that Britain and the European Union will still strike a post-Brexit trade deal despite renewed tensions.

Sterling won support also from a rise in UK inflation, while oil prices dropped by almost two percent.

"European equity markets are in the red... as traders are growing tired of the fact that US politicians have yet to strike a deal with respect to the stimulus package," noted David Madden, analyst at CMC Markets UK.

"The lack of a stimulus scheme combined with growing fears about the health crisis have hurt stocks."

After months of stuttering talks -- and with a deadline approaching -- Democrats and the White House said they were closing the gap on their stimulus proposals, with House Speaker Nancy Pelosi saying legislation was being drawn up.

Her comments fanned optimism for a much-needed spending boost for US households and businesses, as a fresh wave of coronavirus hits the country and threatens to trigger the reimposition of economically painful containment measures.

However, while Pelosi said she was hopeful a bill could be passed before the November 3 election, she warned it must go through legislative steps.

The White House has upped its offer by $80 billion to $1.88 trillion, which is still short of the Democrats' $2.2 trillion plan, but US President Donald Trump has said he is willing to go higher.

And if nothing is passed before the election, traders broadly expect a new package to be passed at some point, whoever wins next month.

With Joe Biden ahead in polls -- while Democrats could possibly win both houses of Congress -- there is speculation an even bigger deal could be pushed.

All three main Wall Street indices were substantially stronger on Tuesday, and most of Asia followed suit Wednesday.

Tokyo closed with a gain of 0.3 percent, while Hong Kong rose 0.8 percent.

Shares in Hong Kong airline group Cathay Pacific jumped more than two percent after announcing it would make huge job cuts and shut down one of its carriers.

Shanghai's main stocks index dipped after recent gains however.

Elsewhere, coronavirus vaccine hopes were given a lift after US biotech firm Moderna said its jab could be given approval for emergency use as early as December.

Meanwhile a report said drugs giant AstraZeneca is expected to be allowed to restart trials in the US after they were suspended worldwide in September when a volunteer fell ill.

The firm has already revived tests in Britain and elsewhere after being given permission.

The news comes as the disease sees frightening new flare-ups across the United States and in Europe, where numerous countries have been forced to introduce targeted lockdowns that have fanned fears for business survival and warnings of a possible double-dip recession.

Key figures around 1130 GMT -

London - FTSE 100: DOWN 1.1 percent at 5,822.72 points

Frankfurt - DAX 30: DOWN 0.9 percent at 12,626.52

Paris - CAC 40: DOWN 1.0 percent at 4,880.57

EURO STOXX 50: DOWN 1.0 percent at 3,196.64

Tokyo - Nikkei 225: UP 0.3 percent at 23,639.46 (close)

Hong Kong - Hang Seng: UP 0.8 percent at 24,754.42 (close)

Shanghai - Composite: DOWN 0.1 percent at 3,325.01 (close)

New York - Dow Jones: UP 0.4 percent at 28,308.79 (close)

Euro/dollar: UP at $1.1857 from $1.1824 at 2130 GMT

Dollar/yen: DOWN at 104.84 yen from 105.45 yen

Pound/dollar: UP at $1.3057 from $1.2946

Euro/pound: DOWN at 90.83 pence from 91.33 pence

West Texas Intermediate: DOWN 1.7 percent at $40.98 per barrel

Brent North Sea crude: DOWN 1.6 percent at $42.47 per barrel


Comments are closed.

European stocks, dollar slide awaiting US stimulus

PL on POL products target: IMF-govt talks hamstrung by disconnect

ECP should announce election schedule for KP, Punjab: President Alvi

More survivors found as Turkiye-Syria quake toll tops 11,200

Pak Suzuki announces plant shutdown yet again due to inventory shortage

MCB’s profit up 10% in 2022, forex income jumps 149%

LHC suspends ECP's order de-notifying 43 PTI MNAs

Pakistan navy to host 50 nations in maritime exercises from Feb 10

Sri Lanka bankruptcy to last until 2026: president

12 TTP terrorists killed in KPK’s Lakki Marwat: ISPR

AIIB chief economist briefed about state of economy