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European stocks break out of worries over US-China tensions as Lufthansa and easyJet climb



European stocks fell on Thursday amid concerns over tensions in the United States and China as data show the economy has bottomed out.

1% price increase on Wednesday, Stoxx Europe 600
SXXP,
-0.70%

decreased by 0.8%

The German DAX
DAX,
-1.26%

fell by 1.3%, the French CAC 40
PX1,
-0.94%

lost 1.1% and the US FTSE 100
UKX,
-0.79%

decreased by 0.8%.

The losses came after the US Senate approved the replacement of new legislation on Wednesday, which could ultimately prevent many Chinese companies from listing on US stock exchanges or otherwise raising money from US investors. US President Donald Trump has said that China’s incompetence is responsible for “mass killings around the world”.

The decline also came at the first opportunity for European traders to respond minutes from the latest Federal Reserve interest rate commission, in which members are worried about the possibility of a potential second wave of infections that would shake the United States and the global economy.

Global coronavirus infections have crossed 5 million, according to data from John Hopkins.

Economic data show that the eurozone economy is crawling from the bottom. The index of shopping managers in France rose to 30.5 in May from 11.1 in April, the flash German composite index PMI rose to 31.4 from 17.4, and the flash British composite index rose to 28.9 from 13 , 8 in April for rocks where any reading below 50 indicates that conditions are deteriorating.

“The slight easing of the decline compared to last month’s data only serves to highlight the depth of the fall in production in April and does not signal that the road is clear for improvement in the manufacturing and services sectors,” said Duncan Brock, director of the group. CIPS, the figures in the UK.

Lufthansa
LHA,
-0.45%

won nearly 5% after saying it was in advanced talks for nearly 9 billion euros in state aid.

EasyJet
EZJ,
+ 5.56%

shares also rose nearly 5% as the airline said it would resume flights on June 15 with a short schedule focused on domestic flights to the United States and France.

Whitbread
WTB,
-11.11%

shares fell 14% after the owner of the Premier Inn announced it was selling £ 1bn shares.

Dow Jones Industrial Average futures
YM00,
-0.66%

fell 140 points before the last reading of unemployment claims in the United States.


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