· Deutsche Bank posts second-quarter net loss as restructuring continues amid the pandemic
Deutsche Bank on Wednesday reported a net loss attributable to shareholders of 77 million euros ($90.3 million) for the second quarter.
This marks a stark improvement from the bank’s 3.2 billion euro loss for the same period last year in the throes of a mass restructure, and outstrips its own consensus estimates of a 133 million euro net loss. Analysts polled by Reuters had projected a net loss of 182.9 million euros.
Barclays posts profit slide as the firm sets aside another £1.6 billion for coronavirus-related loan losses
Barclays posted a net income of £695 million ($765.64 million) for the first half of 2020, while increasing its coronavirus-related provisions.
· Stocks in Asia Pacific were mixed on Wednesday as investors awaited the U.S. Federal Reserve’s interest rate decision.
Overall, the MSCI Asia ex-Japan index rose 0.13%.
Investor focus was likely on the upcoming rate decision by the Fed, expected to be out sometime on Wednesday stateside.
In corporate developments, shares of Japanese automaker Nissan Motor plummeted 10.39% on Wednesday after the company on Tuesday forecast a 470 billion yen loss for the fiscal year 2020. Canon also saw its stock plunging 13.46%, with the moves coming after the company reported its first ever quarterly loss, according to Reuters.
· Nikkei ends at 3-week low on lackluster earnings, stronger yen
Tokyo stocks fell Wednesday for a fourth consecutive day, with the benchmark Nikkei index falling to a three-week low, as investor sentiment was dampened by weak corporate earnings reports and a stronger yen.
The 225-issue Nikkei Stock Average ended down 260.27 points, or 1.15 percent, from Tuesday at 22,397.11. The broader Topix index of all First Section issues on the Tokyo Stock Exchange finished 20.08 points, or 1.28 percent, lower at 1,549.04.
Decliners were led by steel and iron, transportation equipment and consumer credit issues.
· Chinese stocks gain most in more than a week on bargain-buying, tech board soars
China’s benchmark index posted the biggest gain in more than a week on Wednesday as investors bought up shares after recent slumps, while the tech-focused STAR board soared on new listings.
At the close, the Shanghai Composite index was up 2.06% at 3,294.55, its best daily performance since July 20.
The blue-chip CSI300 index was up 2.42%, the largest daily gain since last Monday, with its financial sector sub-index higher by 2.22%, the consumer staples sector up 0.82%, the real estate index up 1.12% and the healthcare sub-index up 4.04%.
Shanghai’s tech-focused STAR 50 Index surged by 5.45% on the day, with shares of newly-listed Eyebright Medical Technology Beijing Co Ltd soared by 616.8%
· European markets mixed as investors monitor coronavirus fears, U.S. stimulus impasse
European stocks were roughly flat on Wednesday as countries around the world report rises in new coronavirus cases, while a fresh U.S. relief package hits an impasse in Washington.
The pan-European Stoxx 600 hovered just below the flatline in early trade, with retail stocks adding 1.2% while oil and gas dropped 0.8%.
U.S. Senate Majority Leader Mitch McConnell unveiled Senate Republicans’ proposed $1 trillion coronavirus aid bill on Monday, but Democrats have criticized the package’s limitations compared to a $3 trillion proposal that passed the House of Representatives in May. Complicating matters further, President Donald Trump on Tuesday voiced disagreement with some aspects of the bill, though talks are continuing.
Tuesday was the second consecutive day that the U.S. reported more than 1,000 fatalities, while China reported 101 new cases of Covid-19 on Wednesday, its sharpest daily increase for more than three and a half months.
Hong Kong Chief Executive Carrie Lam has warned that the city faces an outbreak that could lead to the “collapse” of its hospital system, with 106 new cases reported Tuesday. In France, confirmed cases rose to 183,804 from 183,079 on Monday.
Investors will also be monitoring the outcome of the U.S. Federal Reserve’s latest monetary policy meeting, with Chairman Jerome Powell expected to reiterate the central bank’s dovish stance later on Wednesday.
Reference: CNBC, Reuters
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