On Friday European Stocks lowered extensively, as optimism surrounding a potential Covid vaccine vanishes in the face of increasing numbers of coronavirus infections and the prospect of more economic discomfort. The German DAX traded 0.2% lower, the U.K.’s FTSE index dropped 0.6%, while the CAC 40 in France rose 0.1%.
This week the United States reported fresh daily records for new Covid-19 case hospitalizations, and it seems like the news in Europe is just as gloomy. On Thursday the UK reported 33,470 new cases, the highest daily total to date, while Italy and Germany are struggling to inflate their infection curves. But Spain has been seeing some success stories by bringing down their infection rates, just like Ireland.
European Central Bank President Christine Lagarde brought awareness on Thursday that the region’s economy still faced difficult times despite U.S. pharma giant Pfizer (NYSE:PFE) reporting strong efficacy numbers earlier this week for the potential Covid vaccine it is developing, alongside Germany’s BioNTech (NASDAQ:BNTX).
In a Panel discussion Lagarde said, “From a huge river of uncertainty, we see the other side now.” “But I don’t want to be exuberant about this vaccination because there is still uncertainty” about the development and distribution of the vaccine.
Investors will look at the latest repetition of the third-quarter European growth figures later in the session, after the first estimate showed seasonally adjusted GDP increased by 12.7% in the euro area and by 12.1% in the EU, in comparison with the previous quarter.
In corporate news, EDF stock fell 0.4% after the French power group posted a decline in third-quarter revenue as the pandemic sapped electricity demand. French utility Engie also noticed a drop in operating income and revenue in the third quarter as it took a hit from the pandemic, but its stock rose 3.8%.