European Stocks Close Lower On Growth Concerns

(RTTNews) - European stocks ended broadly lower on Wednesday as concerns over uncertainty about pace of global economic recovery amid rising new cases of coronavirus infection across the world rendered the mood bearish.

The Disappointment over Chancellor Rishi Sunak's fresh stimulus measures to support jobs and activity in the UK and Prime Minister Brian Johnson's warning that the UK is ready to go without a trade deal if the EU wasn't prepared to compromise weighed as well.

The pan European Stoxx 600 declined 0.67%. The U.K.'s FTSE 100 ended down 0.55%, Germany's DAX slid 0.97% and France's CAC 40 shed 1.24%, while Switzerland's SMI drifted down 0.29%.

Among other markets in Europe, Austria, Belgium, Finland, Greece, Netherlands, Poland, Russia, Iceland, Ireland, Spain, Sweden and Turkey ended with sharp to moderate losses, while Czech Republic, Denmark, Norway and Portugal closed higher.

In the U.K. market, Easyjet shares tumbled 6%. WPP declined 5% and Melrose ended lower by nearly 4%. HSBC Holdings, IAG, Ashtead Group, Meggitt, Evraz, Whitbread, 3i Group and Smith & Nephew also declined sharply.

On the other hand, Fresnillo and Rolls-Royce Holdings both ended higher by about 3.3%. Coca-Cola, Associated British Foods, M&G, BHP Group and Anglo American gained 1.5 to 2.3%.

In the French market, Peugeot, Renault and Valeo shed more than 4%. Saint Gobain, Publicis Groupe, STMicroElectronics, Vinci, Unibail Rodamco, Atos, BNP Paribas, Societe Generale, Michelin, Airbus, ArcelorMittal and Capgemini lost 2 to 3%.

In Germany, Wirecard shares plunged more than 11.5%. Thyssenkrupp, Continental, Fresenius Medical Care, HeidelbergCement, Fresenius, Siemens, Volkswagen, Adidas and Beiersdorf lost 1.8 to 4.3%.

In economic news, UK Chancellor Rishi Sunak unveiled a package of GBP 30 billion worth of stimulus measures, including tax cuts and bonuses, to support jobs amid the economic slump caused by the coronavirus pandemic. The latest measures are part of the government's three phase plan to boost the economy that is severely hurt by the lockdown and social distancing measures triggered by the Covid-19.

"Our plan has a clear goal: to protect, support and create jobs," Sunak told parliament. "It will give businesses the confidence to retain and hire."

The chancellor announced a job retention one-off bonus of GBP 1,000 for each furloughed employee who is still in employment as of January 31, 2021.

The government will launch a GBP 2 billion Kickstart Scheme to create hundreds of thousands of new, fully subsidised jobs for young people in the 16-24 age group who are claiming Universal Credit and at risk of long-term unemployment.

The chancellor also announced a total GBP 1.6 billion investment for scaling up employment support schemes, training and apprenticeships to help people looking for a job.

According to the statistical office Insee, France's economy is expected to rebound in the third quarter from the unprecedented downturn caused by the coronavirus pandemic. Gross domestic product is forecast to contract 17% in the second quarter before expanding around 19% in the third quarter and 3% in the fourth quarter.

In the whole year of 2020, GDP is expected to fall 9%, the biggest contraction since 1948.

The Insee expects faster than anticipated containment of the virus, and relatively good rebound in household spending to result in relatively rapid recovery.

Switzerland's unemployment rate increased slightly in June, rising marginally to a seasonally adjusted 3.3% from 3.2% a month earlier, the State Secretariat for Economic Affairs, or SECO, reported.

On an unadjusted basis, the unemployment rate fell to 3.2% in June from 3.4% a month ago. Economists had expected a rate of 3.4%.