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Europe retreats as BoE forecast hits London stocks

Published 06/08/2020, 08:27
Updated 06/08/2020, 08:30
© Reuters.
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(For a live blog on European stocks, type LIVE/ in an Eikon
news window)
Aug 6 (Reuters) - European shares dipped on Thursday as
forecasts of a slower post-pandemic economic rebound in the UK
hit London stock markets, while disappointing quarterly updates
from Glencore and AXA weighed on broader sentiment.
The pan-European STOXX 600 index .STOXX slipped 0.4% by
0710 GMT, with London's FTSE 100 .FTSE falling 1.1%.
The more internationally-focussed UK stocks took a hit as
sterling rose after the Bank of England kept rates unchanged and
warned of possible risks from taking interest rates below zero.
GBP/
Mining group Glencore GLEN.L dropped 4.3% after it decided
to scrap its dividend to focus on lowering debt as the COVID-19
pandemic forced it to book a $3.2 billion impairment charge.
French insurer AXA AXAF.PA slipped 2.6% after it dropped
its 2020 earnings target and said it would not make additional
payouts to shareholders in the fourth quarter.
On the bright side, Adidas ADSGn.DE gained 3.5% as it
forecast a rebound in profits in the third quarter and
Lufthansa LHAG.DE jumped 4.8% even as said it does not expect
air travel demand to return to pre-crisis levels before 2024.

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