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European stocks slumped Thursday on worries the global economy won’t rapidly bounce back after the lockdowns from the coronavirus pandemic.
The Stoxx Europe 600 SXXP, -0.92% fell 0.9%, after a rough Wall Street session following the grim outlook from Federal Reserve Chairman Jerome Powell.
The German DAX DAX, -0.77% dropped 0.8%, the French CAC 40 PX1, -0.98% fell 1% and the U.K. FTSE 100 UKX, -1.39% dropped 1.4%.
Through Wednesday’s trade, the Stoxx 600 is still up 19% from the lows of March.
As countries gradually open up one concern is while the outbreak curve has flattened it has not diminished, which leave little room for governments to maneuver if infections accelerate.
Geopolitical tensions were apparent as the U.S. accused China of trying to steal vaccine information|] while France objected to one of its drugmakers, Sanofi SAN, -1.20% , saying it would give U.S. priorityto a coronavirus vaccine.
Of stocks on the move, Jerónimo Martins JMT, -10.53% shares dropped 11% after the operator of supermarkets in Portugal, Poland and Colombia cut its dividend and withdrew guidance. Analysts at Jefferies said April sales were “weak,” particularly at its Pingo Doce and Ara stores.
Straumann Group STMN, -7.53% dropped 4% as the Swiss dental products company announced 660 job cuts.
Hargreaves Lansdown HL, +7.69% climbed 8% as the U.K. investment firm reported net new business of £4.0 billion in the four months ending April 30.
Futures on the Dow Jones Industrial Average YM00, -0.11% rose 15 points, ahead of jobless claims data due at 8:30 a.m. Eastern.
