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Sharp losses rock European shares, and a decline of up to 5% in Germany due to the closure
German stocks suffered their worst daily performance since early June on Wednesday after the government agreed to a general lockdown to tackle the growing number of COVID-19 cases, with all European markets tracking their trail on fears of further restrictions across the continent.
The German DAX index plunged by up to five percent, then trimmed its losses to close 4.2 percent at its lowest level in five months. Details of German measures are still under negotiation, and sources say the government has decided to close bars and restaurants from November 2.
The pan-European STOXX 600 index fell 3% in its steepest daily loss in five weeks. The main French index fell 3.4% ahead of President Emmanuel Macron's televised speech at 1900 GMT in which he is expected to issue home restraint orders.
"News of renewed lockdown measures ... will fuel concerns about growth in the region," said Mohamed Kazemi, portfolio manager at UBB.
"This (Christine) Lagarde, President of the European Central Bank, is likely to push the monetary easing side in her comments during tomorrow's press conference, paving the way for more easing measures in the future."
