European stocks hit mid-June low on report from France considering nationwide lockdown


FILE PHOTO: The DAX chart of the German stock price index is shown on the stock exchange in Frankfurt, Germany October 27, 2020. REUTERS / Staff / File Photo

(Reuters) – European stocks hit their lowest level since mid-June on Wednesday following a report that France was considering a month-long nationwide lockdown to tackle a surge in coronavirus infections.

The pan-European STOXX 600 index .STOXX fell 1.6% to 0808 GMT, while the German DAX .GDAXI fell 2.2%, the UK’s FTSE 100 .FTSE down 1.5% and the CAC 40 in France .FCHI dipped 2.5%.

The French government is considering a new national lockdown starting at midnight Thursday, BFM TV reported, albeit slightly more flexible than the two-month shutdown that began in mid-March.

President Emmanuel Macron will deliver a televised speech later in the evening, his office said.

Meanwhile, German Chancellor Angela Merkel wants to close all restaurants and bars from November 4 according to a draft resolution seen by Reuters, while the Telegraph newspaper reported that British Prime Minister Boris Johnson is under pressure for a new one. locking.

Economically sensitive sectors such as car manufacturers .SXAP, banks .SX7P and insurers .SXIP led the first declines, falling between 2.5% and 3%.

Deutsche Bank AG DBKGn.DE fell 3.6%, despite announcing a surprise move to quarterly net income and improving the earnings outlook for its investment bank.

Reporting by Sruthi Shankar in Bengaluru; Edited by Sriraj Kalluvila


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