Stocks fell in Europe alongside U.S. futures on Thursday after corporate earnings failed to re-ignite rallies and prospects wilted for new stimulus from Washington before the November election. The dollar rose with Treasuries.

European equities opened with a tumble lower amid earnings disappointments. Roche Holding’s quarterly sales fell short of estimates. Oil producer Total SE’s shares dropped after reporting its European refining margin dropped. The drop in U.S. index futures signaled U.S. equities may fall for a third session. That’s unless earnings from Morgan Stanley and Charles Schwab later on Thursday manage to spark some optimism.

China’s stock market outperformed peers in Asia. The country’s central bank added medium-term funding to the financial system to help guide the economy further through the pandemic.

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FX Overnight News:

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• Concerns that a resurgence in the Covid-19 pandemic could lead governments throughout Europe to shut down their economies again has hit the confidence of investors, particularly after the recent stock rally.
• New cases are hitting 100,000 daily in Europe. Nearly 20,000 infections were reported in Britain, while the French government on Wednesday declared a public health state of emergency.
• Germany, France, the U.K., and others are in the process of instituting measures such as limited lockdowns, bar closures and other systems intended to reduce the spread of infection.
• European Union leaders are set to meet in Brussels later Thursday to discuss progress, amid few signs of compromise on the tricky issues of fisheries, fair competition and dispute resolution.
• Oil prices edged lower Thursday, retreating slightly despite a larger-than-expected draw in U.S. crude supply amid worries about the rising number of coronavirus cases and the impact this could have on demand.

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FX Overnight Volatility

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Today's Economic Calendar:

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Chart of the Day:

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Source: Bloomberg, Investing.com

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