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Europe close: Dax clobbered by losses for tech and gains for euro, periphery stocks higher

By Alexander Bueso

Date: Tuesday 20 Oct 2020

Europe close: Dax clobbered by losses for tech and gains for euro, periphery stocks higher

(Sharecast News) - Shares in Europe finished on a decidedly mixed note despite hopes for a new fiscal package in the States and further positive news on the pandemic front.
Overnight, a spokesman for the speaker of the US House of Representatives, the Democratic Party's Nancy Pelosi, said that she and Treasury Secretary Steve Mnuchin were narrowing their differences over new government stimulus.

Further bolstering sentiment, US biotech outfit Moderna's boss told a Wall Street Journal conference that its Covid-19 vaccine candidate might receive government approval for emergency use by December.

Against that backdrop, the pan-European Stoxx 600 index was down 0.35% at 365.51, alongside a 0.92% drop for the German Dax to 12,736.95 as euro/dollar moved higher reaching 1.1826.

Spain's Ibex 35 on the other hand was up 0.98% to 6,927.3, possibly benefitting from recent declines in Covid infections, although the country's economy minister was being criticised for having too rosy a predisposition when it came to projecting fourth quarter GDP growth - although the economy had likely bottomed out already.

Italy's FTSE Mibtel also clocked in with advance, adding 0.56% to 19,482.13, while the French Cac-40 dipped 0.27% to 4,949.8, although it managed to end the day off its worst levels.

Within the Stoxx 600, Technology was a notable loser, with the sector giving back 1.24% - following a poor update from US giant IBM on Monday evening - and banks were up 0.68%.

Commenting on the underlying mood in markets, Spreadex analyst, Connor Campbell, said: "It feels like we are entering a potentially choppy period for the markets. The US presidential election is about to become more of a pronounced presence, especially since a lack of pre-vote stimulus package - Nancy Pelosi's 48-hour deadline ends tonight - means the outcome will dictate what kind of relief Americans receive.

"And at the same time the Covid-19 crisis is intensifying - and remember, we aren't in the acute months of winter yet either - with the ominous shuttering sounds of more restrictions in Europe joined by rising positivity rates in several prominent US states."

In corporate news, Logitech International shares topped the gainers, vaulting almost 16% to a fresh record high as the computer accessories maker reported a 75% jump second-quarter sales, as profit surged during the three month period.

Britvic fizzed higher as it said adjusted profit for 2020 is expected to be slightly ahead of current market consensus after better-than-expected trading over the summer. It also announced a new and exclusive bottling agreement with PepsiCo.

Shares in biopharmaceutical lab equipment maker Sartorius was 4% higher, having been up 7% in the morning, after guiding for revenue at the upper end or slightly above previously forecasted 22% - 26% range for the year.

Sartorius said it had gained from biopharmaceutical customers increasing production capacities for coronavirus vaccines and Covid-19 therapeutics.

UBS shares rose as the Swiss bank set aside $1.5bn for stock buybacks, and another $1bn for dividends, which it expects to receive permission to restart next year.

Early gains for Reckitt Benckiser evaporated, earlier the fast-moving consumer goods giant had lifted its full-year like-for-like net revenue guidance and posted a jump in third-quarter sales as the pandemic underpinned demand for its disinfection brands.

Reckitt's group sales on a like-for-like basis rose 13.3% in the third quarter to £3.5bn and 12.4% in the year to date to £10.4bn. Third quarter profit nearly doubled on the back of a 42% surge in global markets revenue.

Shares in rail ticketing firm Trainline were went off the tracks by 13% as chief executive Clare Gilmartin said she would stand down at the end of February. She will be replaced by current chief operating officer and former Photobox chief Jody Ford.

Shares of remote software provider TeamViewer slumped 1% after Permira sold an 11% stake at an 8% discount to Monday's close.

CAC 40 - Risers

Saint Gobain (SGO) 36.47 +7.90%

Accor (AC) 24.26 +4.39%

Societe Generale S.A. (GLE) 12.72 +3.47%

TECHNIPFMC (FTI) 6.23 +2.70%

BNP Paribas (BNP) 33.31 +2.16%

Airbus SE (AIR) 67.11 +2.12%

Safran (SAF) 93.40 +1.99%

Sodexo (SW) 63.04 +1.97%

Renault (RNO) 24.20 +1.66%

Vinci (DG) 74.74 +1.52%

CAC 40 - Fallers

Air Liquide (AI) 131.60 -2.37%

Capgemini (CAP) 108.25 -2.21%

Danone (BN) 52.30 -2.13%

Veolia Environnement (VIE) 17.34 -1.45%

Dassault Systemes (DSY) 157.95 -1.22%

Valeo (FR) 27.54 -1.11%

Sanofi (SAN) 84.82 -0.73%

ST Microelectronics (STM) 29.27 -0.54%

Publicis Groupe Sa (PUB) 31.25 -0.48%

Atos (ATO) 69.20 -0.23%


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