European shares post worst intra-day plunge since mid-December, fall 0.8% in the week

by   |  VIEW 2008

European shares post worst intra-day plunge since mid-December, fall 0.8% in the week

On Friday, a basket of European bourses winded down the session sharply lower and had snapped a four-week long streak of weekly percentage gains as the likelihoods of a stiffer lockdown measure, slower-than-expected vaccine shipments across the continent alongside a renewed lockdown in a number of major Chinese cities had dampened investors’ optimism.

Adding further strains, US pharmaceutical Pfizer Inc. said in a statement earlier in the day that some states of the 26-member bloc would receive a fewer-than-anticipated pandemic vaccine doses which it had developed in collaboration with Germany’s BioNTech, leading to a 2.2 per cent dive in the shares’ prices of Frankfurt-listed BioNTech while jittering fresh concerns amid a sharp rise in pandemic cases.

In point of fact, Friday’s downfall in European shares were almost entirely prodded over frets of an even distribution of vaccine doses, while a raft of rancorous fiscal data in the US had fanned up the flames further.

European shares falter as pandemic cases soar

Aside from that, in the latest flashpoint of vaccine associated concerns, German Chancellor Angela Merkel said earlier in the day that the bloc’s largest economy must kick off “very fast actions” to counter the recent spread of pandemic cases, while France, the eurozone’s second-largest economy, had inclined a nationwide border control measure effective from Monday.

Quoting statistics, amid such chaotic health environments in a majority of Eurozone member-states, the regional pan-European STOXX 600, which had hit an eleven-month high earlier this week over a US pandemic stimulus optimism, wrapped up the day 1 per cent lower, while in the week, STOXX 600 reported a weekly percentage decline of 0.8 per cent, the index’s first weekly drop since mid-December.

Besides, London’s blue-chip FTSE 100 faltered 1.05 per cent to 6,730.47 and French CAC 40 had shrugged off 1.22 per cent to 5,611.69, while Frankfurt’s DAX dwindled as much as 1.44 per cent to close out the session at 13,787.70.

Elsewhere in the Europe, Madrid’s benchmark IBEX 35 plunged 1.69 per cent to 8,230.70, while Italy’s FTSE MIB jolted 1.13 per cent to 22,381.35. Meanwhile, citing that the money markets across Europe were looking to see through the latest leg of pandemic-driven wintry chills, a head of equities at London & Capital, Roger Jones, said, “Market positioning had been quite aggressive, so I suppose it is a pause for breath.

The rollout and the speed of vaccination is becoming increasingly important and the market is willing to look through a period of extended lockdown if it’s a relatively short period”.