S&index futures reversed earlier losses as the U.S. House of Representatives passed a $484 billion coronavirus aid package, while China’s central bank cut another policy rate as expected. Sentiment was helped after US Covid-19 infections rose at the slowest pace in three weeks, and the potential easing of lockdowns in Europe.

Europe did not share US enthusiasm and the Stoxx 600 dropped after the region’s leaders failed to agree on a long-term stimulus package and news the Remdesivir coronavirus drug was a flop. Food and beverages was the only gaining industry group to advance after food giant Nestle reported its fastest sales growth since 2015 as consumers loaded up on frozen food. Travel, oil and bank shares led the decline. The banking index led the declines in European stocks after S&P cut Commerzbank’s credit rating by a notch and lowered its outlook for Deutsche Bank to negative from stable.

German’s Ifo Business Climate index plunged in April to 74.3, below the 79.7 expected and down sharply from prev 85.9 previously. The Ifo Expectation print came in at an apocalyptic 69.4 (exp 75.0; R prev 79.5), while the Current Assessment was a bit stronger at Apr: 79.5 (exp 80.5; R prev 92.9).

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