Europe stocks, U.S. futures sink as coronavirus quashes rebound

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European shares fell again on Thursday, taking their cue from U.S. equity future...

LONDON - European shares fell again on Thursday, taking their cue from U.S. equity futures, which implied a lower open for Wall Street as cases of the coronavirus surged in the U.S.

Futures for U.S. stocks pointed to more pain ahead. E-Minis for the S&P 500 fell nearly 2% after California declared a state of emergency as coronavirus cases increased. U.S. stocks on Wednesday found relief in Joe Biden’s performance in the campaign for the Democratic presidential nomination. Biden is considered less likely to raise taxes and impose new regulations than rival Bernie Sanders.

The Federal Reserve and Bank of Canada have both responded by cutting interest rates by 50 basis points. Markets in the euro zone are pricing in a 90% chance that the European Central Bank will cut its deposit rate, now minus 0.50%, by 10 basis points next week.

 

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Surprisingly the virus didn't die on news of Biden's rise, impressive as it was.

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