European equities mixed despite French stimulus packages By Investing.com – Investing.com



© Reuters.

By Peter Nurse

Investing.com – European stock markets are expected to open on Thursday, helped by the launch by France of a new stimulus plan, but in a climate of caution given the main economic data for services.

At 2:05 am ET (0605 GMT), the contract in Germany was down 0.4%, in France it was up 0.4%, while the UK contract was up 0.2%.

The French government on Thursday announced its intention to inject 100 billion euros ($ 118.3 billion) of stimulus over two years to mitigate the economic impact of the coronavirus crisis.

The plan notably proposes 35 billion euros to make the second largest economy in the euro area more competitive, 30 billion for more environmentally friendly energy technologies and 25 billion to support employment, reported Reuters, before the official presentation. Thursday evening.

Earlier Thursday, China’s activity rose for a fourth consecutive month in August, with Caixin’s services PMI remaining above the 50 mark, even though it fell to 54.0 from 54 , 1 in July, the companies surveyed hired more people for the first time since January.

The service sector, which accounts for around 60% of the economy, was initially slower to return to growth than the manufacturing sector, but its recovery has accelerated in recent months.

The news was less good in Japan, with the world’s third largest economy reporting an August 45, below July 45.4, indicating a shrinking sector.

With that in mind, investors will pay close attention to the release of for Europe later Thursday to see if there has been a pick-up in business activity in hard-hit sectors of the service economy.

In business news, French IT and consulting services provider Capgemini (PA 🙂 should be at the center of attention after announcing double-digit revenue growth in 2020, driven by a gradual recovery in second semester.

Oil prices edged down on Thursday, continuing Wednesday’s steep losses amid concerns over fuel demand given an uneven economic recovery in the United States.

Although the Energy Information Administration detailed 9.362 million barrels for the week ended August 28, much larger than expected, it also saw a drop to 8.78 million barrels per day in gasoline demand in the states. United, against 9.16 million barrels / day the week earlier.

US private employers than expected for a second consecutive month in August, also fueled fears that the economic recovery was lagging behind.

futures contracts fell 0.2% to $ 41.42 per barrel, while the international benchmark contract fell 0.4% to $ 44.27. Both benchmark contracts saw declines of more than 2% on Wednesday, with WTI slipping to its lowest level in nearly four weeks and Brent at its lowest since August 21.

Elsewhere, it fell 0.3% to $ 1,939.40 / oz, as it traded 0.4% to 1.1803.

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