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European stock markets fall due to new restrictions against Covid

October 26, 2020 15:00

European stock markets fall due to new restrictions against Covid

The European indices have opened the last week of October with falls due to the worsening of the second wave of Covid infections and the new mobility restrictions that different governments are adopting to stop the pandemic. Added to this situation is the profit warning announced by software giant SAP and the differences between Democrats and Republicans in the United States in coming to an agreement on a new package of stimulus measures.

The German DAX was the index that registered the greatest falls at midday (CET), with a decline of 2.2%, dragged down by SAP's profit warning. The German company has announced that, due to the second wave of coronavirus, it will take longer than expected to recover and, therefore, has reduced its forecasts for the next few years. SAP shares have fallen by more than 20%.

Admiral Markets MetaTrader 5. Daily CFD SAP chartSource: Admiral Markets MetaTrader 5. Daily CFD SAP chart. Data range: from June 19, 2020, to October 26, 2020. Prepared on October 26, 2020, at 12 noon. Keep in mind that past returns do not guarantee future returns.

In the graph, we can see the huge gap drawn by the price of SAP and how it has plummeted since the close on Friday. So far, in 2020, the German shares have accumulated a fall of more than 15%. In the past five years, it closed in the negative in 2018 only.

The EuroStoxx 50 has also shown falls of more than 1%. The French CAC 40 fell less sharply, 0.5%, in line with the Italian FTSE MIB index.

In the United States, in the pre-opening of Wall Street there were also falls in the main indices pending progress on the economic stimulus discussion.


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