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Slight falls in Europe with US stimulus in focus
European equity markets closed slightly at a low as they are trying to understand the direction of possible further stimulus for the US economy.
Last night, Donald Trump said Congress should quickly expand $ 25 billion in new wage aid for US airlines that are licensing thousands of workers at a time when air travel continues to be severely affected. for the covid-19 pandemic.
This opening to more stimuli leaves investors with the expectation that more aid will be approved in the United States before the elections, contrary to what the US president pointed out on Tuesday afternoon.
Trump said yesterday that he decided to interrupt talks with Democrats with a view to a new economic stimulus package, accusing House Speaker Nancy Pelosi of failing to negotiate in good faith. The head of the White House said that only after the presidential election will negotiations resume.
But the fact that he later spoke of aid to airlines creates the expectation that further stimulus may advance.
The Stoxx 600 Europe benchmark fluctuated between gains and losses throughout the session, ending with a 0.12% drop to 365.45 points.
Of the major Western European indices, only the German Dax closed green, with a marginal rise of 0.2%.
The telecommunications (-1.5%) and insurance (-1.3%) sectors weighed the most, with reinsurance giants Munich Re and Swiss Re under pressure from Hurricane Delta in the US, which threatens to aggravate the already expensive bill. this year with natural disasters.
Industrial sectors advanced, with car manufacturers (+ 1.4%) and mining companies (+ 1.7%) among the best of the day.
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