European stocks fell on Wednesday, with concerns about tightening coronavirus restrictions in parts of Europe and the U.S. stimulus impasse keeping investors worried.
Prospects for an economic relief package in the next two weeks dimmed markedly on Tuesday after U.S. Senate Majority Leader Mitch McConnell revealed that he has warned the White House not to make a deal with House Speaker Nancy Pelosi before the November presidential election.
The pan European Stoxx 600 dropped 0.9 percent to 362.33 after declining 0.4 percent in the previous session. The German DAX, France’s CAC 40 index and the U.K.’s FTSE 100 were down between 0.9 percent and 1.1 percent.
The British pound advanced in response to EU Chief Negotiator Michel Barnier’s optimistic comments about a post-Brexit trade deal.
Barnier told the European Union parliament the EU was committed to making the necessary compromises required to agree a deal over coming weeks.
Swiss food-and-beverage giant Nestle was little changed after raising its full-year guidance for organic sales growth.
Sweden’s Ericsson soared 7.5 percent after its quarterly core earnings beat market estimates.
Randstad jumped 7 percent. The world’s largest staffing company reported better-than-expected core earnings for the third quarter.
Software AG shares fell nearly 3 percent. The German software giant reconfirmed its 2023 ambitions, including plans to reach 1 billion euros of revenue and expand operating margin to a 25 to 30 percent range.
British postal service and courier company Royal Mail rose about 1 percent after launching a new parcel pick-up service across Britain.
Precious metals mining company Fresnillo slumped 4.2 percent after the company cut its full-year gold production guidance.
Centamin shares plunged almost 20 percent. The gold mining company posted lower gold production and sales for the third quarter compared with the previous quarter.
In economic releases, U.K. consumer price inflation accelerated in September as restaurant and café prices increased driven by the Eat Out to Help Out scheme, a government report showed.
Inflation climbed 0.5 percent annually in September, up from the 0.2 percent increase seen in August. That came in line with expectations.
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