European markets remain pending agreement in Congress

Frankfurt weathered the trend the best, losing just 0.54%. Paris lost 0.98%, Madrid 1.16%, London 1.27% and Milan 1.34%. In Zurich, the SMI dropped 0.31%.

European stock markets ended the session lower on Thursday, still hanging on a deal in the US Congress on a massive stimulus package and not encouraged by the Bank of England meeting.

Frankfurt weathered the trend the best, losing just 0.54%. Paris lost 0.98%, Madrid 1.16%, London 1.27% and Milan 1.34%. In Zurich, the SMI dropped 0.31%.

Wall Street was moving without a marked trend: at 6:45 p.m. (4:45 p.m. GMT), the Dow Jones gained 0.11%, the Nasdaq 0.23% while the S & P500 fell 0.02%.

“US politicians have not yet found a compromise on the stimulus package, and President Donald Trump has threatened to act alone,” notes David Madden, analyst at CMC Markets.

Worth 1,000 billion dollars, the plan targets communities, businesses and households affected by the consequences of the pandemic.

“The aid is concrete and goes directly to households and the economy, so the markets are waiting for this plan”, judges Lara Nguyen, expert in financial investments at Milleis Banque.

However, points of contention, such as the amount of exceptional unemployment benefit, continue to paralyze negotiations.

Another source of concern, “the US government’s relations with China are under pressure,” according to David Madden. The head of US diplomacy Mike Pompeo said Wednesday he wanted to ban certain Chinese applications deemed to be a risk to national security from the purchasing platforms of mobile operators and American phone manufacturers.

At the start of the day, the Bank of England kept the status quo on its interest rates, showing itself slightly more optimistic for growth in 2020 but more pessimistic for 2021.

“Investors have been disappointed because they expect either budget support or monetary support,” both having helped the market rebound since mid-March, Ms. Nguyen said.

In terms of indicators, the numbers of new job seekers in the United States surprised analysts positively: 1.19 million people were newly registered as unemployed last week, down from 1.43 million. people from the previous week.

On Friday, the monthly US employment figures will be particularly expected.

The European sovereign debt market eased again slightly on Thursday, of a similar magnitude for the major countries.

In Paris, Crédit Agricole fell 1.08% to 8.44 euros. The group posted net profit in the second quarter down but close to one billion euros. The insurer Axa fell 3.49% to 17.03 euros after announcing a drop of 39% in its net profit in the first half.

Commodities trading giant Glencore fell 8.08% to 180.34 pence after reporting a loss of $ 2.6 billion in the first half, due to asset write-downs, and announced suspend the dividend.

The values ​​exposed during the pound, which rose sharply after the meeting of the Bank of England, suffered as the image of the spirits maker Diageo (-1.83% to 2,575.00 pence) and the specialist in Reckitt Benckiser hygiene and health products (-1.06% to 7,628.00 pence).

In Frankfurt, among the many business results that animated the day, the airline giant Lufthansa lost 1.22% to 8.10 euros, now deeming unrealistic to achieve the 22,000 job cuts planned without layoffs.

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