European stocks pause, earnings and global growth gloom weigh on investors

European stocks stumbled on Wednesday amid growing investor unease over the extent of economic damage to come from the coronavirus pandemic, and as a difficult earnings season was getting under way.

Recent gains in Europe and the U.S. have been driven by optimism that Western governments are getting a handle on the deadly pandemic. But overshadowing that was a warning from the International Monetary Fund on Tuesday that this year would see worst global growth year since the Great Depression.

In Europe, shares of Adidas ADS, -1.67% fell nearly 3% after the German sportswear maker said it would receive a €3 billion ($3.3 billion) government-backed loan and suspend dividend payments. The company spoke of a “severe impact on its revenue and cash generation in most other parts of the world since mid-March,” in addition to difficulties in its China markets since end-January.

Energy companies were leading on the downside, as Brent BRNM20, 3.36% and U.S. crude oil CL.1, 1.16% prices fell by more than 2% and 2.5%, respectively. The International Energy Agency on Wednesday predicted a record fall in oil demand in April and rapidly filling crude storage as coronavirus shutdowns have crushed demand for the commodity.

Source: https://www.marketwatch.com/story/european-stocks-pause-after-five-day-winning-streak-2020-04-15

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