European stocks dropped after five-day growth

Investors began to focus their attention towards the beginning of earnings season

Companies traded on stock exchanges will announce their first quarter economic results.

European stock index STOXX 600 lost almost 4% during Wednesday trading, even though is had grown in roughly 8% in five previous sessions. The current stock rally was caused by expectations that key European countries got over the worst phase of coronavirus pandemic. Furthermore, some countries were expected to release their coronavirus pandemic measures in upcoming weeks, e.g. Germany.

Yet, the optimism was beaten by earnings season results, when companies started to announce their first quarter financial results. Investors expect that coronavirus crisis has made an impact on many companies. STOXX 600 index loss was similar to other Western European countries, fall in Vienna approached 7%. Banking titles significantly weakened, for example Erste Bank plunged in 11%. Energy and pharmaceutical companies remained around 0%.

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