From Bloomberg’s “Stocks Tumble on Earnings, Virus-Clampdown Fears” posted early Thursday:
Stocks tumbled in Europe amid earnings disappointments and clampdowns by some of the region’s largest cities to curb the virus. U.S. futures slid on wilting prospects for new stimulus from Washington before the November election.
The dollar rose with Treasuries as a risk-off mood took hold. Paris is set for a curfew and Londoners will be banned from mixing with other households indoors beginning this weekend, as leaders struggle to cope with record new cases around the region… Index futures were signaling U.S. equities may fall for a third session unless earnings from Morgan Stanley and Charles Schwab later on Thursday manage to spark some optimism.
Investors are coming to terms with virus flare-ups that are triggering tighter restrictions, just as stalled talks on U.S. stimulus and Britain’s messy exit from Europe weigh on risk appetite. U.S. jobless data in several hours may only add to the gloom, according to strategists at Mizuho International Plc including Peter Chatwell.
“Data today is expected to confirm U.S. economic sentiment is deteriorating, U.S. fiscal stimulus remains some way off, and a hard Brexit” is possible, Chatwell and his colleagues wrote in a note.
In an extraordinary step taking effect Saturday, French President Emmanuel Macron will confine residents of nine of the country’s biggest cities to their homes between 9 p.m. and 6 a.m. for four weeks.
My take: This looks ugly.