Home / Business / European equities struggle for direction as the ECB economist warns of complacency

European equities struggle for direction as the ECB economist warns of complacency



People wearing protective masks keep social distance as they queue to take a PCR test for Covid-19 in front of the Paris city hall on August 31, 2020.

alain jocard / Agence France-Presse / Getty Images

European equities were mixed on Friday as investors looked for direction, observing a stalemate on Brexit and a warning from the European Central Bank that they were too pleased with a recovery in the euro zone.

In the opposite direction, US stock futures indicated a bounce forward for Wall Street, particularly tech stocks, which took a big hit this week on fears the sector has gained too fast.

The Stoxx Europe 600 index
SXXP,
-0.11%

it was flat, the German DAX
DAX,
-0.35%

fell 0.1% and the French CAC 40
PX1,
-0.20%

decreased by 0.1%. The FTSE 100 Index
UKX,
+ 0.30%

it was also flat.

But Dow
YM00,
+ 0.69%

increased by 0.65 and S&P 500
ES00,
+ 0.91%

futures 0.8%, while Nasdaq-100 futures
NQ00,
+ 1.28%

earned over 1%.

The data showed that the UK’s gross domestic product rose 6.6% in July, making up just over half of its production lost to the pandemic.

The week was dramatic in the UK, which is doomed to a stalemate with Brussels after the government said it would change the terms of the withdrawal agreement. The EU is asking the UK to cancel these plans by the end of the month or to jeopardize trade negotiations. The pound
GBPUSD,
-0.14%

it fell more than 3% this week.

Data in Germany showed that consumer prices fell in line with forecasts, by 0.1%. Meanwhile, European Central Bank chief economist Philip Lane warned in a blog post Friday that “there was no room for complacency” about the eurozone economy.

This came a day after the European Central Bank kept monetary policy unchanged and raised its estimate for the euro zone economy this year.

Among the stocks on the move, the shares of Altice Europe NV
ATC,
+ 24.08%

Shares rose 26% after the French telecoms multinational said founder and largest shareholder Patrick Drahi would deprive the company, buying shares it does not own for € 4.11 each.

Shares of Sodexo SA fell 1.2% after the French food services and facilities company said its fourth quarter performance was in line with expectations and could face pandemic costs of more than 400 million. euros ($ 472.6 million) in the second half.


Source link