European and US stocks slide as new lockdowns hit France and Germany

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Escalating cases of coronavirus around the world are weighing on stocks, with signs that European governments may be ready to impose lockdowns to contain a fall wave of the pandemic.

In midday trading, the

Dow Jones Industrial Average

is down more than 900 points, or 3.3%, to 26,556.47. the

S&P 500

decreased by 3.3%. the

Composite Nasdaq

lost 3.4%. All three indices keep pace with their worst week since the week ending March 20.

Meanwhile, the S&P 500 is set to post its worst week of trading ahead of a presidential election, beating the decline ahead of the 2016 election.the

Stoxx Europe 600

the index fell by 3%, with the German

DAX

and French

CAC 40

indices down 4.2% and 3.4%, respectively.

European governments are scrambling to tackle a second wave of the virus, as restrictions imposed in recent weeks do not appear to have brought it under control. This has raised new concerns about the region’s economy.

French President Emmanuel Macron was due to address the nation later Wednesday, with weekend closings and extended curfews possibly part of a plan to cut business. German Chancellor Angela Merkel was to meet with regional leaders and demand additional measures, possibly the closure of restaurants.

The worrying resurgence of Covid-19 in Europe comes as daily cases in the United States remain near record levels, less than a week before the presidential election.

“As has been the case since March, investor concerns are not about the number of daily cases and deaths per se, but the severity of the restrictions that will greet every new leap and the crushing impact these measures will have on the economy. Mondial economy. Said Connor Campbell, financial analyst at Spreadex, in a note to clients.

Next week’s presidential election is also weighing on Wall Street, as long lines for early voting and concerns over postal ballots mean it may be days before the outcome of the election is not known.

Investors are also interested in corporate earnings, with tech giants such as

Facebook

(symbols: FB),

Alphabet

(GOOGL), et

Twitter

(TWTR) reporting later this week. CEOs of those companies will appear before Congress on Wednesday to testify about Section 230, a law that protects platforms from liability for content posted by users. Shares of Facebook fell 5.1%, those of Alphabet by 5.2% and Twitter by 5.7%.

Oil plunged as the price of West Texas Intermediate crude fell 6%. Gold fell 1.6%. The 10-year Treasury yield fell 0.015 percentage point to 0.763%.

General Electric
(GE) jumped 9.1% after posting a surprise third-quarter profit.

Boeing
(BA) fell 3.5% after posting a lower than expected loss for the quarter and saying it planned to lay off thousands of workers as the company continues to cope with weak travel demand.

Bed bath and beyond
(BBBY) shares fell 11.8% after management presented a three-year transformation plan that included $ 675 million in share buybacks.

black stone
(BX) fell 2.9% despite better than expected earnings results.

CoreLogic
(CLGX) shares jumped 13.3% after the real estate data company said it had discussed with third parties a possible sale at $ 80 or more per share.

Microsoft
(MSFT) slipped 4.3% even though its latest quarterly sales and profits were higher than expected.

Banks paved the way for southern Europe, although

German Bank

reversed an earlier decline to increase 1%. The German lender posted better-than-expected results which were supported by a strong performance from its investment bank.

Actions of

Puma

fell nearly 3%, after the German sportswear maker reported higher profits and sales in the third quarter, but said it couldn’t predict its performance for the year due to the uncertainty about the damage caused by the pandemic.

Write to Barbara Kollmeyer at [email protected] and Carleton English at [email protected]

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