European Stocks Largely Flat; Coronavirus Developments in Focus

European Stocks Largely Flat; Coronavirus Developments in Focus  | Jan 13, 2021 08:47

European Stocks Largely Flat; Coronavirus Developments in Focus

By Peter Nurse - European stock markets were largely flat Wednesday, with investors keeping a wary eye on developments surrounding the coronavirus while monitoring the U.S. political turbulence.

At 3:45 AM ET (0845 GMT), the DAX in Germany traded 0.1% lower, the CAC 40 in France rose 0.1% and the U.K.'s FTSE index climbed 0.1%. 

The near-term outlook for the European economy darkened somewhat on Tuesday after a report by the newspaper Bild suggested German Chancellor Angela Merkel wanted to extend the current lockdown in Europe's largest economy through the end of March. 

"It seems the December trading enthusiasm, driven by the prospect of a global economic recovery, is now being offset by alarming Covid-19 numbers as well as valuation concerns over stocks that went far away from their equilibrium price," said Pierre Veyret, a technical analyst with ActivTrades, in a morning note.

That said, the underlying tone remains positive given low interest rates globally and monetary and fiscal stimulus from central banks and governments alike, as well as the idea that vaccinations are coming.

Later Wednesday, the U.S. House of Representatives is set to vote to impeach President Donald Trump over the recent turmoil in the U.S. Capitol. Vice President Mike Pence resisted pressure on Tuesday to invoke the 25th Amendment to remove Trump. An impeachment trial could proceed even after Trump leaves office on Jan. 20.

Back in Europe, Telefonica (NYSE:TEF) stock rose 7.5% after the Spanish telecom company agreed to sell its mobile phone masts in Europe and Latin America to U.S.-based telecom infrastructure operator American Towers for 7.7 billion euros ($9.41 billion) in cash. 

ASOS (LON:ASOS) stock rose 3% after the retailer posted a better-than-expected trading update, while Carrefour (PA:CARR) stock climbed over 6% after it emerged that Canada’s Couche-Tard was in talks to buy the French retailer. 

November industrial production figures for the euro zone are also due. The euro-area economy is poised to shrink again at the start of this year as the resurgent pandemic plunges the region into a double-dip recession.

Oil prices continued to climb Wednesday, boosted by industry data showing a hefty draw in U.S. inventories, again suggesting that the U.S. measures to contain the latest surge in the pandemic have had less effect on demand than those in Europe.

Oil stocks in the U.S. dropped by 5.8 million barrels last week, data from the American Petroleum Institute showed late Tuesday. The government agency, the Energy Information Administration, releases its data later Wednesday.

U.S. crude futures traded 0.3% higher at $53.37 a barrel, while the international benchmark Brent contract rose 0.5% to $56.84. Both benchmarks are close to their highest levels since February.

Elsewhere, gold futures rose 0.7% to $1,857.35/oz, while EUR/USD traded 0.2% lower at 1.2186.


Related News

Latest comments

Add a Comment
Please wait a minute before you try to comment again.
Write a reply...
Please wait a minute before you try to comment again.

Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.

English (USA) English (India) English (Canada) English (Australia) English (South Africa) English (Philippines) English (Nigeria) Deutsch Español (España) Español (México) Français Italiano Nederlands Português (Portugal) Polski Português (Brasil) Русский Türkçe ‏العربية‏ Ελληνικά Svenska Suomi עברית 日本語 한국어 简体中文 繁體中文 Bahasa Indonesia Bahasa Melayu ไทย Tiếng Việt हिंदी
Sign out
Are you sure you want to sign out?
Saving Changes


Download the App

Get free real time quotes, charts and alerts on stocks, indices, currencies, commodities and bonds. Get free top of the line technical analysis/predictors. is better on the App!

More content, faster quotes and charts, and a smoother experience is available only on the App.