Europe stocks slide as COVID worries swamp investors
Europe stocks tumbled on Monday, tracking losses across global equities, as investors faced worries over surging COVID-19 cases and restrictions to combat that, alongside concerns a key U.S. spending bill was in trouble. “With record Covid cases in the U.K. in the past few days, and new restrictions being implemented across Europe, it almost feels like an action replay of 12 months ago, with some scientists in the U.K. calling for a fresh lockdown before Christmas, in a move that is likely to be as welcome as toothache,” said Michael Hewson, chief market analyst at CMC Markets.
The Stoxx Europe 600 index
dropped 0, after finishing last week with a 0.4% drop. The German DAX
the French CAC
and the FTSE 100 index
rose 0.1% and the British pound
fell 0.2%. The Netherlands entered a nationwide lockdown on Sunday evening, with schools, universities, and all nonessential stores, bars and restaurants closed until Jan. 14, as France, Austria tightened up travel restrictions, and Ireland imposed an 8 p.m. curfew for pubs, bars and indoor and outdoor entertainment events. Governments in Spain and Italy will also be meeting this week to consider new measures. Read: Europe reimposes restrictions to curb omicron; Netherlands to lockdown again The U.K. reported 82,886 more lab-confirmed COVID-19 cases on Sunday, and officials have said new restrictions before Christmas could not be ruled out. The British Medical Association warning that almost 50,000 doctors, nurses and other National Health Service staff in England could be off sick by Christmas Day barring further measures. Europe also tracked losses for U.S. stock-index futures
which fell on COVID concerns and worries that a President Joe Biden’s key $2 trillion spending bill was in trouble after Sen. Joe Manchin, D-W.Va., said on Sunday that he couldn’t support it. That developed prompted Goldman Sachs to cut its 2022 U.S. growth forecasts. Almost every stock sector was in the red, with apparel, banks, technology and pharmaceutical sectors leading the declines. Among the heavyweights, chip group ASML Holding fell 2%, German business software group SAP
fell 3%, while luxury goods group LVMH Moët Hennessy Louis Vuitton
stock dropped 2.6%. AstraZeneca shares
fell 1.8%. Also weighing on indexes, were losses for energy names, as U.S.
and global benchmark Brent crude prices
fell more than 3% each. Shares of TotalEnergies
and Royal Dutch Shell
shares fell around 3% each. Bucking the downward direction, shares of BNP Paribas
rose 0.7% after the French bank said it would sell its U.S. unit, Bank of the West to Bank of Montreal for $16.3 billion in cash. As a result, BNP said it would see a one-off capital gain, net of taxes, of about 2.9 billion euros ($3.26 billion), and boost its common equity Tier 1 ratio by 170 basis points.