European shares drop as Powell fans recovery fears
Reuters
Published May 14, 2020 03:30AM ET
(Reuters) - European shares retreated on Thursday as comments from U.S. officials fanned concerns of a prolonged economic downturn due to the coronavirus outbreak, while investors eyed the prospect of a second wave of infections fearfully.
The pan-European STOXX 600 (STOXX) slid 1% by 0715 GMT, falling past a one-week low hit on Wednesday after the Federal Reserve Chair Jerome Powell warned of a recession worse than any since World War Two, and called for additional fiscal spending.
Automakers (SXAP), technology (SX8P) and banking (SX7P) stocks led declines, with TeamViewer (DE:TMV) down 6.3% after private equity firm Permira sold shares worth 1.03 billion euros ($1.1 billion) in the German software company.
Airbus (PA:AIR) slipped 1.6% following a report that the aerospace group is exploring restructuring plans involving the possibility of "deep" job cuts, industry sources said.
In contrast, pan-European exchange operator Euronext (PA:ENX) gained 5.1% after reporting a 55% jump in quarterly revenue, partly driven by the heavy trading in March which has propped up profits for some banks and brokerages.
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Written By: Reuters
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