European markets digest warning from the US Fed

European stocks are expected to open lower Thursday with investors pausing to digest an economic warning from the U.S. Federal Reserve’s Chairman Jerome Powell.

London’s FTSE is seen 39 points lower at 5,852, Germany’s DAX is seen 55 points lower at 10,489 France’s CAC 40 is seen 25 points lower at 4,317 and Italy’s FTSE MIB is expected to open 104 points lower at 16,935, according to IG.

Expected declines at the open in Europe come after Fed’s Chairman Jerome Powell said on Wednesday that policymakers may have to use additional policy weapons to pull the country out of an economic mire that has cost at least 20 million jobs and caused “a level of pain that is hard to capture in words.”

“While the economic response has been both timely and appropriately large, it may not be the final chapter, given that the path ahead is both highly uncertain and subject to significant downside risks,” he said.

Meanwhile, President Donald Trump said Wednesday that top coronavirus health expert Dr. Anthony Fauci’s recent warning about the potentially dire consequences of reopening states and schools too soon was “not an acceptable answer.”

In Asia, stocks traded lower on Thursday afternoon as a data release showed employment in Australia falling in April. 

In Europe Thursday, investors will be keeping an eye on earnings from Bilfinger, Deutsche Telekom, Merck, RWE and Zurich Insurance. On the data front, France releases first-quarter unemployment numbers.

– CNBC’s Jeff Cox and Eustance Huang contributed to this market report.

Source Article

Next Post

Deutsche Telekom says coronavirus to have limited impact on financials

FILE PHOTO: Brochures with the logo of Deutsche Telekom AG are pictured at the shop in the headquarters of German telecommunications giant in Bonn, Germany, February 19, 2019. REUTERS/Wolfgang Rattay (Reuters) – Deutsche Telekom (DTEGn.DE) said on Thursday that the coronavirus pandemic would have a limited impact on its financial […]