Covid panic spreading through sectors and causing sharp falls on stock markets

October 28, 2020 13:30

The panic over new mobility restrictions to fight the rapid increase in Covid-19 infections is spreading through the main European indices, which have registered sharp falls in the first hour, including:

  • German DAX
  • French CAC 40

These led in losses, with falls of more than 2.5% while the London FTSE 100 fell 1.4% and the EuroStoxx 600 fell 1.8%.

Pessimism about economic recovery is beginning to flood investors' spirits after the French government announced the possibility of a new one-month national lockdown and there is talk in Germany of a soft lockdown and the closing of bars and restaurants. Italy has also imposed limitations on nightlife and the opening of bars and restaurants.

The good quarterly results presented by companies such as Deutsche Bank or Carrefour have not been able to stop the falls in the main indices, which see the end of this serious global economic crisis ever further away.

Wall Street futures also point to falls similar to those of European stocks, above 1%, while the market awaits news about the new stimulus package negotiated by Democrats and Republicans a week before the presidential elections.

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