Stock exchanges operate stable, investors pending bank results

Stock exchanges operate stable, investors pending bank results

File photo of a worker at the Goldman Sachs stand on the New York Stock Exchange.

© Reuters/Brendan McDermid
File photo of a worker at the Goldman Sachs stand on the New York Stock Exchange.

By Carolyn Cohn

LONDON, Oct 14 (Reuters) – European stocks were stable on Wednesday, supported by gains in Wall Street futures, following losses the day before from setbacks in Johnson & Johnson vaccine trials and difficulties approving. more stimulus in the United States, while the dollar was flat.

* The STOXX 600 European equity index was up 0.1% marginally at 1022 GMT, while the Frankfurt, London and Paris markets were trading flat or slightly higher.

* The markets were not showing a concrete trend, as they remained concerned about “the delays of a vaccine (for COVID-19), the stalled negotiations of a fiscal package in the United States and the discussions without progress of the Brexit”, said Kit Juckes , strategist at Société Générale.

* Wall Street futures rose 0.4%, on a day in which results are expected from more US banks: Goldman Sachs, Wells Fargo and Bank of America. On Tuesday, JPMorgan released earnings figures above analysts’ expectations.

* Tuesday’s stock market decline began on Wall Street when Johnson & Johnson announced that it stopped clinical trials of its potential COVID-19 vaccine after one of the study volunteers suffered an unexplained illness.

* Eli Lilly and Co also suspended the trial of its coronavirus antibody treatment due to safety concerns, deepening the decline in the US market. J&J shares closed 2.3% lower and Eli Lilly fell nearly 3.3%.

* The expectations that a new economic stimulus plan will be approved in Washington also faded because the Speaker of the House of Representatives, Nancy Pelosi, rejected a proposal of 1.8 trillion dollars presented by the White House.

* “Stimulus talks are still going nowhere, reducing the possibility of a new round of monetary aid before the elections,” said Rodrigo Catril, strategist at Australian firm NAB.

* MSCI’s Broad Asia Pacific Stock Index excluding Japan was down 0.25% after a seven-day rally, pressured by the decline in Wall Street futures earlier in the day in Asia. Chinese papers closed 0.7% lower.

* In the foreign exchange market, the pound sterling had the most pronounced declines due to the complex Brexit negotiations, which did not show progress. The currency lost 0.4% against the euro, the dollar and the yen.

* The leaders of the European Union will hold a summit on Thursday and Friday in Brussels to evaluate the discussions for the future commercial relationship with the United Kingdom.

(Reporting by Carolyn Cohn, Swati Pandey and Marc Jones; edited in Spanish by Marion Giraldo)


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