On Tuesday, a basket of European bourses had fallen across the board, as concerns were mounting over the fiscal fallouts of renewed pandemic restrictions across a number of major European economies, while fears of a pandemic resurgence alongside a lack of progress in US stimulus bill had offset the impacts of a raft of better-than-expected quarterly earnings’ reports.
Notably, as a slew of European stock indices had extended their losing streak into Tuesday, investors would be eyeing a Thursday meet of ECB (European Central Bank) policymakers for hints on whether the bloc’s largest lender had been considering another series of fiscal stimulus in light of a second wave of pandemic situation, suggested analysts.
European stocks totter as concerns mount over pandemic restrictions
In point of fact, as a double whammy of an increase in pandemic infections across the United States and Europe alongside waning hopes of a US stimulus package in a near-term outlook, had added to further pains for the European investors, the regional pan-European STOXX 600 faltered as much as 1 per cent to a one-month low.
Apart from that, a German newspaper Bild reported earlier in the day that the German Chancellor Angela Merkel had been exploring an option to incline a “light lockdown” in the bloc’s largest economy which would likely to focus on a forced shutdown of bars and restaurants, eventually swaying the deep-pocket equity funds and individuals away from opening up new buying positions.
Citing statistics, on the day’s European market round off, European stocks had stomached heavy beating with Madrid’s IBEX 35 leading the tally of the losses, while London’s FTSE 100 plunged 1.09 per cent to 5,728.99, Frankfurt’s DAX shed 0.93 per cent to 12,063.57 and French CAC 40 dived as much as 1.77 per cent to 4,730.66.
Elsewhere in the Europe, Italy’s FTSE MIB muzzled 1.53 per cent to 18,654.95, while Madrid’s IBEX 35 had beaten a hasty retreat of 2.14 per cent to win down the day at 6,651.30. Meanwhile, citing a corrosive road ahead for the global economies, a global head of strategy at Brown Brothers Harriman, Win Thin said on the day’s European market wind down, “The ECB is widely expected to stand pat until the next meeting.
Macro forecasts won’t be updated until the December 10 meeting, but the bank will have to acknowledge the deteriorating outlook now. ”