Investing.com - European stock markets on Tuesday decrease while investors "digest" a new warning regarding coronavirus, as well as abundant corporate news.
At 03:50 Eastern Time (08:50 Greenwich) The DAX index in Germany traded 0.5% lower, CAC 40 in France decreased by 0.1%, and the FTSE British index is 0.2%.
The World Health Organization stated on Monday that last week the number of new diseases coronavirus increased for the first time in seven weeks.
WHO CEO Tedros Gebreesus warned that countries early to rely exclusively on vaccination programs and abandon other measures. This warning was received at a time when European countries are already discussing the timing of removal of movement restrictions established to combat the virus.
Retail sales in Germany in January dropped sharply - by 4.5% compared with the previous month, which indicates the continuing effects of quarantine restrictions on Europe's largest economy.
The mood in Europe on Tuesday was also influenced by the losses of "heavyweight" companies in the oil production sector: ROYAL Dutch Shell shares (NYSE: RDSA), BP (NYSE: BP) and Total (PA: TOTF) fell by 1-2%.
As for other sectors, Danone shares (PA: DANO) increased by 0.5% after the French Food Group shared the functions of the Chair and the Chief Executive Director, who occupied Emmanuel Faber, and began searching for the new CEO after calls for several shareholders to make permutations In the manual.
Shares of British Taylor Wimpey (LON: TW) increased by 3.4% after the developer stated that he would restore the payment of dividends a year later, when the company's profit before tax fell into two thirds. This announcement will be an interesting background to publish the British budget on Wednesday, which is reportedly reported may include additional tax benefits for housing buyers.
Travis Perkins (LON: TPK) shares, on the contrary, fell 1.6% after the construction trading company suffered losses due to restructuring and expenses related to COVID-19.
Boohoo shares (LON: Booh) lost 7% after reporting that the company will face a possible ban on imports from the United States due to recent statements that it used under-charts on its British plants.
World stock indices on Monday demonstrated significant growth due to positive news about another vaccine from COVID-19, as well as progress in the US bill on incentives by $ 1.9 trillion.
Nevertheless, investors continue to argue about whether the markets are not too much "inflated" after huge incentives to combat the effects of a pandemic. The prospect of accelerating inflation as the global economy has restored concerns that monetary policy may have to tighten before expected.
On Tuesday, oil prices declined because traders expect a meeting scheduled for Thursday the organization of oil exporters and their allies, including Russia - OPEC +.
Leading manufacturers are currently holding up the delivery to the market about 7 million barrels daily, or 7% of the world demand, but can authorize the return of some part to the market, given the recent increase in oil prices. The data published on Tuesday showed that oil production in Russia in February actually decreased due to a long period of extreme cold weather, which did not allow it to use to increase the amount of production, the agreement was achieved at the last meeting of the Group.
Also, interest will be to submit data on the supply of crude oil in the United States from the American Oil Institute (API), which will be published later during the session.
Futures for American wet oil WTI fell 0.9% to $ 60.11 per barrel, while the International Brent reference contract fell by 1% to $ 63.08.
Gold futures fell 0.2% to $ 1720.25 per ounce, while EUR / USD fell by 0.2% to 1,2020.
Author Peter Nerst
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