European shares in a red sea of Nile as France, Germany impose emergency lockdowns

by   |  VIEW 1323

European shares in a red sea of Nile as France, Germany impose emergency lockdowns

On Wednesday, a slew of European stock indices fell across the board with Frankfurt’s DAX suffering its steepest intra-day plunge since early June, as investors seemed to be spooked after German Chancellor Angela Merkel had announced a one-month long partial lockdown earlier in the day, while other European bourses had wrapped up the day sharply lower over fears of similar measures ahead.

In point of fact, a full-fledged spike in pandemic cases across the continent alongside in the United States with no vaccine or feasible cure in sight in a near-term outlook, had been the sole market mover on Wednesday, while the French Government of President Emanuel Macron had inclined a nationwide lockdown late on the day, opening up a doorway to further tottering of the European stocks.

European shares in a red sea as pandemic restrictions reimposed

On top of that, while a number of European stock exchanges had been bracing for further downslide momentum over the coming weeks, Frankfurt’s DAX was tanked as much as 5 per cent, however, ended up the day 4.2 per cent lower after paring some of its earlier losses in late-afternoon session.

Besides, as the French main index .FCHI was jolted as much as 3.4 per cent lower ahead of a televised address by the French President Emmanuel Macron while he was expected to re-impose a nationwide lockdown, the regional pan-European STOXX 600 was sapped as much as 3 per cent, marking up its biggest intra-session drop in nearly a month and a half.

Citing statistics, on Wednesday’s European market closing bell, major indices had finished sharply lower with Frankfurt’s DAX leading the tally of the losses, while London’s FTSE 100 plunged 2.55 per cent to 5,582.80, French CAC 40 shrugged off 3.37 per cent to 4,571.12 and Frankfurt’s DAX was hit with a heavy whiplash of 4.17 per cent to 11,560.51.

Elsewhere in the Europe, Italy’s FTSE MIB nosedived as much as 4.06 per cent to 17,897.79, while Madrid’s benchmark IBEX 35 had winded down the session 2.66 per cent lower to 6,474.40. Meanwhile, voicing sheer concerns over the recent leg on pandemic-led forced business closure measures which in effect would more likely to delay the continent’s recovery from the pandemic propelled slump, a portfolio manager for UBP’s Absolute Return Fixed Income team, Mohammed Kazmi said on Wednesday’s European market closure, “News of renewed lockdown measures...

will add further to growth concerns in the region, at a time when mobility indicators have already started to fall and survey indicators moderate.