Stocks - Europe Drifts Lower; Airbus Falls on Tariff Blow

Stocks - Europe Drifts Lower; Airbus Falls on Tariff Blow  | Aug 13, 2020 08:53

Stocks - Europe Drifts Lower; Airbus Falls on Tariff Blow

By Peter Nurse - European stock markets edged lower Thursday, retracing after sharp gains Wednesday, with investors fretting over the pace of the economic recovery in the region, not helped by the decision of the U.S. government to leave tariffs on Airbus and a host of other European goods unchanged.

At 3:55 AM ET (0755 GMT), the DAX in Germany traded 0.2% lower, the CAC 40 in France fell 0.1% and the U.K.'s FTSE index was down 1%.

German consumer prices data, released earlier Thursday, confirmed disinflationary pressures in Europe’s largest economy, contrasting with signs in the U.S. that inflation is gathering speed, pointing to economic recovery.

Elsewhere, France's unemployment rate fell to 7.1% in the second quarter, from 7.8% the previous quarter, much better than the jump to 8.3% expected. However, that 's largely because many unemployed are only counted as such if they are actively looking for work, which was impossible for most of the quarter. The data also showed a sharp drop in employment

More ominously, there is still no sign of a breakthrough in the stalemate in talks over the next U.S. stimulus package.

In corporate news, Thyssenkrupp (DE:TKAG) stock dropped 11% after it said operating losses at its struggling steel division could hit 1 billion euros this year.  

TUI, the world's largest tourism company, dropped 1.5% after reporting a 1.1 billion euro ($1.30 billion) loss in the third quarter due to the pandemic. The company is set to receive another government loan of over 1 billion euros to stay afloat.

Airbus (PA:AIR) dropped 1.3% after the U.S. government said it would maintain 15% tariffs on the company's aircraft, as well as 25% tariffs on other European goods, despite moves by the European Union to resolve a long-standing dispute over aircraft subsidies.

Oil prices edged lower Thursday, consolidating after gains the previous session on the back of U.S. government data showing a fall in inventories, giving weight to the view that fuel demand is returning despite the coronavirus pandemic.

U.S. crude futures traded 0.2% lower at $42.59 a barrel, while the international benchmark Brent contract fell 0.2% to $45.34. 

Elsewhere, gold futures fell 0.5% to $1,939.50/oz, settling into a lower range registering all-time highs above $2,000. EUR/USD traded 0.4% higher at 1.1825.


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.