European shares post worst weekly decline since June as pandemic bubble jitters

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European shares post worst weekly decline since June as pandemic bubble jitters

On Friday, a basket of European bourses had winded down the session in an ambivalent tenure, while a drag on export-oriented Frankfurt’s DAX had led to a decline in French CAC 40, nonetheless, London’s blue-chip index FTSE 100 had scored a modest gain, though the regional pan-European STOXX 600 had recorded its worst weekly percentage decline since mid-June, as investors’ frets over a second wave of pandemic outbreak appeared to have taken a hefty toll on the eurozone stocks.

Apart from the steep declines in Frankfurt’s DAX alongside CAC 40, the STOXX 600’s banking sector had drowned to an all-time low on record. In point of fact, Friday’s faltering of the European bourses were almost entirely galvanized by a growing angst over a second wave of pandemic outbreak which in turn would likely to lead to a second round of forced business closures, while upbeat remarks from the White House officials over progresses on a $2.2 trillion pandemic stimulus bill had botched to uplift the morale of the European investors.

Besides, in the latest flashpoint of a likely no-deal Brexit less than four months ahead of a December 31 deadline, big moneys appeared to be hovering at the bays instead of London Stock Exchange, while a number of heavy-weight investors in Britain were reportedly seeking a investment citizenship in other EU countries that would be offering visa-free access into the 27-nation bloc.

Amid such garrulous fundamentals in the European bourses, the regional pan-European STOXX 600 had reported a 3.6 per cent in weekly percentage decline, marking up the index’s worst weekly decline since mid-June.

European shares totter amid fears of second wave of pandemic

Citing statistics, on Friday’s European market closure, London’s FTSE 100 added 0.34 per cent to 5,842.67 and French CAC 40 had curbed out 0.69 per cent to 4,729.66, while the heavily export-oriented Frankfurt’s DAX had curtained the day 1.09 per cent lower to 12,469.20.

Elsewhere in the Europe, Italy’s MIB FTSE had been muzzled by 1.10 per cent to 18,698.36, while Madrid’s benchmark IBEX 35 shed 0.23 per cent to wrap up the day at 6,628.30. Meanwhile, referring to a raft of new pandemic restrictions in Europe stoking frets of a second wave of pandemic outbreak, Barclays’ European equity strategists wrote in a client note, “New restrictions in Europe, less fiscal support, fading liquidity impulse and election risk should weigh on activity in Q4. Economic surprises are starting to roll over from all-time high levels.