European stocks are lowering on lockdown fears, with the virus infections increasing

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Thursday, October 15, 2020 - 18:05
Point Trader Group

European stocks fell on Thursday, as demand for stocks fell globally due to the resurgence of Covid-19 infections to the increase across the continent and the dwindling of hopes for more fiscal stimulus in the United States before the presidential elections.

The pan-European STOXX 600 index fell 2.1 percent, in its worst daily performance in more than three weeks, after auto, insurance and energy shares lost more than 2 percent.

Bank stocks tracked lower bond yields, ignoring signs of a recovery in M&A activity after a report said Italy's Banco BPM and France's Credit Agricole had signed a confidential deal in a first step toward formal talks on a possible merger.

European stock exchanges recovered from low levels reached in March against the backdrop of the Corona virus, with the support of a set of stimulus measures globally, but sentiment has been affected recently by the escalation of infections as well as indications of a slowing economic recovery.

Stock exchanges in France, Italy, Spain and Germany fell between 1.4% and 2.8%.

Britain's FTSE index fell 1.7% after the government imposed tighter restrictions in London, while investors were looking for signs of progress on a trade deal linked to Britain's exit from the European Union at the two-day EU summit that began on Thursday.


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