European Indices See Bloodbath Over Fading US Stimulus Hopes

European indices are among the worst-affected on Thursday after Asia markets and U.S. futures dropped lower, as hopes of a stimulus before the U.S. election in November fades with a Democratic-Republican stalemate. Dow Jones futures are trading 0.51% lower and the S&P500 futures are down 0.63% at press time. Stocks across the board in Europe are trading in the red.

Euro Stoxx 50 index has plunged 2.4% at publication time as the August Industrial Production grew 0.7%, missing consensus of 0.8%, but falling 7.2% year-over-year. European Central Bank President Christine Lagarde is scheduled to speak late Thursday.

London's FTSE 100 index has shed 2.07% at press time, led by a sharp decline in bank stocks, energy stocks, and airlines due to government restrictions to curb rising coronavirus cases. Bank of England's Credit Conditions Survey is due for release soon.

Germany's DAX is down a massive 2.75% as German bond yield drop to a seven-month low and investors move to safer assets. Stocks across the board are down sharply with automobiles, banks, energy, and technology stocks leading the decline. No major economic events are scheduled for Thursday.

France's CAC 40 index has shaved off 2.09% after September Consumer Price Index declined 0.5% month-over-month, in-line with consensus. Financial, energy, and consumer stocks are pushing the index lower. Consumer Sentiment Index data for October is scheduled to release Thursday.

Spain's IBEX index is trading 1.73% lower with all sectors in the red. Bank and energy stocks are leading the decline.

Forex Trading: U.S. Dollar Index futures has advanced 0.19% to 93.545. The dollar has gained 0.14% against the Euro to $1.1730 and 0.12% against the Sterling to $1.2994.

ETFs to watch Thursday: Vanguard FTSE Europe ETF VGK and SPDR Euro Stoxx 50 ETF FEZ, iShares MSCI United Kingdom ETF EWU, iShares MSCI Eurozone ETF EZU