Jump to content

European stocks slide as lockdown worries resurface


MongiIG

Recommended Posts

image.png

By Anisha Sircar, 19th November 2021. Investing.com

(Reuters) - European stocks gave up early gains on Friday as concerns over the economic damage from fresh COVID-19 lockdowns in the region hammered cyclical sectors such as banks and automakers.

The pan-European STOXX 600 index fell 0.3% after hovering near record highs earlier in the session.

It lost ground after news that Austria will become the first country in western Europe to reimpose a full COVID-19 lockdown this autumn to tackle a new wave of infections.

Germany's Health Minister Jens Spahn said the coronavirus situation in the country was so grave that a lockdown, including for people who have been vaccinated, cannot be ruled out.

Frankfurt shares fell 0.4%, while sectors more exposed to economic cycles such as banks, automakers and travel & leisure fell between 1.4% and 2.8%.

South European markets, including those in Spain and Italy, fell more than 1% each.

"COVID-19 is getting worse in Europe, but the virus is having less of an effect on stock markets compared to the first wave as vaccines roll out and treatment progresses," said Capital Economics market economist Thomas Mathews.

"But if things worsen and a major part of the economy goes into lockdown, it might start to take a toll on regional stock markets."

European stocks have hit a series of record highs this month as a stronger-than-expected earnings season helped investors look past concerns about rising inflationary pressures.

European Central Bank President Christine Lagarde said inflation in the euro zone will fade so the ECB should not tighten policy as it could choke off the recovery, and hinted at continued bond purchases next year.

The ECB is due to decide on the future of its bond-purchase programmes at its Dec. 16 policy meeting.

Irish airline Ryanair (LON:RYA) dropped 2.6% after announcing its intention to delist from the London Stock Exchange, citing costs related to retaining an additional listing.

 

French luxury group Hermes gained 5.1%, after jumping more than 6% in the previous session, on market talks that it may be added to the Eurostoxx 50 index during a December review.

Focus is also on Moody's imminent review of Greece's credit rating, with analysts expecting an upgrade due to better-than-expected macro trends. Greece's main Athens stock index has rallied about 15% this year on a broader rebound in the economy.

Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • General Statistics

    • Total Topics
      20,088
    • Total Posts
      88,149
    • Total Members
      69,078
    • Most Online
      7,522
      10/06/21 10:53

    Newest Member
    TheGreedyGreek
    Joined 03/10/22 19:45
  • Posts

    • Stock Market SP 500, NASDAQ 100 NDX, Russell 2000 RUT. Dow Jones Industrial (DJI) Elliott Wave Technical Analysis and Trading Strategies. US Markets News Today:The Dow moved higher 800 points as stocks rose broadly. Treasury yields fell back towards 4% Elliott Wave Market Summary: The move up is a bear market rally on lower volume, corrective. Expect the next session to open higher then fade lower. Elliott Wave count: iv of (c) of iv) of 3 of (1) Day / Trend Trading Strategies: Day traders look to short Wave cv of (c) of iv) and also the turn lower as Wave (i) and (ii) building shorts... Video Chapters 00:00 S&P500  15:29 NASDAQ 100 (NDX) 19:06 Russell 2000 (RUT)  19:57 Dow Jones (DJI) 21:18 End. Thanks for supporting! Analyst Peter Mathers TradingLounge™ Australian Financial Services Licence - AFSL 317817 Source: tradinglounge com    
    • Market data to trade on Tuesday: AUD rates and GRG earnings          
    • Sterling is climbing on the foreign exchange markets despite a U-turn by the government on the proposed changes to the 45p top rate of tax. gbp        
×
×
  • Create New...