European markets trade lower ahead of U.S. jobless claims data

13 August,2020

• European stocks opened in negative territory Thursday.
• The latest U.S. jobless claims data are out Thursday.
• London’s FTSE is seen opening 40 points lower at 6,226, Germany’s DAX 12 points lower at 13,056, France’s CAC 40 down 13 points at 5,065 and Italy’s FTSE MIB down 31 points at 20,355, according to IG.

European stocks were trading lower Thursday morning as investors awaited the latest U.S. jobless claims data and tracked the lack of progress in negotiations over a U.S. pandemic relief package.

The Europe Stoxx 600 index was down 0.3% in early morning trades, with most sectors in negative territory apart from retail, autos, travel and leisure, telecoms and household goods.

Thyssenkrupp was among the worst performers on the index, with its shares down 11.6% after the German steel company posted a 679 million euro ($800 million) quarterly loss. The company said it’s seeing signs of stabilization, however, following the easing of lockdown restrictions and the sale last month of its elevator unit.

Shares of Carlsberg were also down around 5% after the Danish brewer said it expected profit to fall 10%-15% in 2020 due to lockdowns in Europe and China impacting sales, Reuters reported.

Shares of Deutsche Telekom were up 2% after the company posted a jump in second-quarter revenue and core profit, and raised its guidance for the year.

The latest weekly jobless claims data stateside are in focus for investors Thursday as they provide a snapshot of the state of the world’s largest economy.

Another 1.1 million workers are expected to have filed first-time claims for state unemployment benefits during the week ended August 8. That would mark a deceleration from the prior week, though still well above any reading prior to the pre-Covid era. 

Meanwhile, U.S. House Speaker Nancy Pelosi said Wednesday that Democrats and the Trump administration are “miles apart” on negotiations for the next pandemic relief package, in what is now a common refrain for progress on a possible deal.

In Asia, markets mostly jumped on Thursday morning, following a surge in the U.S. markets Wednesday as tech stocks rallied, brushing off the lack of progress over a coronavirus aid package.