Breaking News
Ad-Free Version. Upgrade your experience. Save up to 40% More details

European Stocks Mixed; UBS Helps Mitigate Early Losses

Stock MarketsOct 20, 2020 08:50
Saved. See Saved Items.
This article has already been saved in your Saved Items
© Reuters.

By Peter Nurse - European stock markets traded mixed Tuesday as losses due to worries about the impact of the Covid-19 surge and doubts over U.S. stimulus were mitigated by positive corporate news, including from banking giant UBS.

At 3:50 AM ET (0750 GMT), the DAX in Germany traded 0.3% lower, the CAC 40 in France was up 0.3%, while the U.K.'s FTSE index climbed 0.1%.

Europe has been hardest hit with the second wave of the Covid-19 virus, with new cases growing at over 150,000 a day. Ireland late on Monday declared a six-week lockdown of non-essential businesses in the latest indication that European authorities are struggling to bring the virus back under control. 

The number of new cases in the United States last week also rose 13% to more than 393,000, approaching levels last seen during the summer peak, according to a Reuters analysis. 

Even with these numbers, most investors doubt U.S. lawmakers will reach a stimulus deal ahead of a Tuesday deadline imposed by House Speaker Nancy Pelosi, as the gap between what the two parties are offering is still too wide, and the bad feeling too deep seated.

Still, the early weakness on European stock exchanges--back up and running smoothly after Monday’s mishap--has been largely mitigated by some strong earnings news.

UBS (NYSE:UBS) stock rose 2.2% after the Swiss banking giant reported its third best quarter for a decade, with net profit soaring 99%.

Staying in Switzerland, Logitech (NASDAQ:LOGI) stock surged 12% after the computer hardware maker raised its full-year forecast, while travel retailer Dufry (SIX:DUFN) gained 2.1% after Chinese e-commerce giant Alibaba (NYSE:BABA) took a 6.1% stake.

In the U.K., Reckitt Benckiser (LON:RB) stock rose 1.8% after saying that its third-quarter revenue rose thanks to its disinfection business. It also raised its full-year guidance for net revenue growth.

On the flip side, BMW (DE:BMWG) stock fell 0.6% despite the German car manufacturer posting strong third-quarter free cash flow numbers for its automotive division. It had already said unit sales rose 8.6% in the quarter. 

Oil prices weakened Tuesday on continued worries about the demand for oil going forward, particularly in the large oil-consuming nations in Europe and the U.S. A meeting of the OPEC+ bloc on Monday gave no clear indication that the world's biggest exporters were about to delay their scheduled output in January.

Traders will be watching for crude and product inventory data from the American Petroleum Institute later on Tuesday, with analysts expecting U.S. oil and distillate stockpiles to have fallen in the latest week.

U.S. crude futures traded 0.1% lower at $41.03 a barrel, while the international benchmark Brent contract fell 0.2% to $42.55.

Elsewhere, gold futures fell 0.4% to $1,903.30/oz, while EUR/USD traded 0.1% higher at 1.1772.


European Stocks Mixed; UBS Helps Mitigate Early Losses

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email