European Markets Wrap: Stocks Finish Lower On OECD Forecasts

European markets finished lower ahead of Federal Reserve’s monetary policy decision and the first economic projections since the coronavirus outbreak. OECD, in the latest report, noted that the economic outlook is highly uncertain as the COVID-19 explosion has triggered the worst recession in a century. OECD forecasts for euro area a GDP contraction of -9.1% in 2020, while if the second wave of infections erupts the shrinkage will be -11.5%.

In London, the FTSE 100 ended 0.10% lower at 6,329, after the Organisation for Economic Cooperation and Development (OECD) warned that UK economy would take the worst hit from the coronavirus crisis among developed nations, and expects an 11.5% contraction in GDP, while under the worst-case scenario of a second coronavirus wave it sees a contraction of -14%.

Lloyds Banking Group (LLOY) finished 0.58 lower at 35.02, Vodafone (VOD) is 1.93% lower at 136.26, Barclays (BARC) -1.02% at 124.00, RBS -1.98% at 128.75, BT Group -1.27% at 120.50 and Tesco +1.61% at 227.00.

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Dax Index Continues The Correction  

The Dax index ended 0.70% lower at 12.530 dragged down by Lufthansa -5.74% at 11.17, BASF -1.83% at 55.20, Siemens -1.50% at 105.34 and Adidas -1.23% at 248.20. The government announced earlier today that the border control with Switzerland, France, Denmark and Austria, will end on June 15.

In Paris, the CAC 40 index finished 0.82% lower at 5,053 after the French industrial output came down by 20.1% for April, with manufacturing tanking almost 22%.

In Milan, the FTSE MIB index ended 0.82% lower at 5.053. European Central Bank member Ignazio Visco said that the Italian economy is expected to shrink between 9.2% and 13.1% this year but also added the Italian economic data point that the Italian economy is recovering. 

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