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Felicia Tan
August 1 19:37

European stock indices have reduced early results

European stock indices cut early results as weak GDP data from the Eurozone offset previous optimism about the encouraging news about the income of the American technology giants Amazon, Apple, Alphabet, and Facebook.
Eurostat's preliminary estimate showed that the eurozone economy contracted at its fastest pace in the second quarter amid a coronavirus pandemic.
Gross domestic product fell by -12.1% quarter-on-quarter, up from -3.6% in the first quarter. This was more than the -11.2 percent drop forecast and was the sharpest decline seen since the beginning of the series in 1995.
In annual terms, GDP fell by -15% in the second quarter against a decline of -3.1% a quarter ago.
Meanwhile, Eurostat's preliminary estimates showed that total inflation unexpectedly rose to 0.4% in July from 0.3% in June. Economists predicted a rate cut to 0.2%.
German DAX added 0.32%, and the French CAC 40 rose by only 0.06%, while the British FTSE 100 fell by -0.07%, completely changing the early results.
Fears of a second coronavirus wave increased in the UK after the government imposed new blockades in the north late Thursday.
Technical stocks were spread across all areas. The market value of ASM International NV rose by 4.6%, Dialog Semiconductor - by 3%, and Infineon Technologies - 2.6%.
Nokia Oyj jumped by 13%. Finnish telecommunications group increased its forecast for 2020, according to which profits in the second quarter increased by 22%.
Lender BNP Paribas increased by 2.6% after it exceeded its profit expectations in the second quarter.
Air France-KLM's market value fell by about -1% after the airline announced it would cut 1,500 additional jobs.
Car manufacturers BMW, Daimler, and Volkswagen fell by more than -1 percent each as the euro reached its highest level in more than two years.
Shares in the International Consolidated Airlines Group fell by -7.2 percent after the British Airways owner lost EUR 4.21 billion and announced plans to raise EUR 2.75 billion in the capital.