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