Name: European stocks are already headed for the worst week in months as more COVID-19 restrictions loom
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European stocks are already headed for the worst week in months as more COVID-19 restrictions loom

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European stocks fell sharply on Wednesday, the third straight drop and already the worst week since June, as investors watched France and Germany for potentially more restrictions as cases climbed on the continent.The Stoxx Europe 600 indexfell 2.4%, after closing nearly 1% lower on Tuesday. The index has lost more than 5% in just three days of trade. The German DAXdropped 3.7%, the French CAC 40tumbled 3.3%, and the FTSE 100fell 2%. The gloom filtered over to Wall Street, where the Dow. Rising COVID-19 cases in the U.S. and largely abandoned hopes for a pre-election stimulus plan hit investors at the start of the week. The U.S. presidential election is just under a week away. Read: French President Emmanuel Macron is expected to address the nation in a televised address later on Wednesday and could announce fresh measures, . France is among Europe’s worst-hit nations as a second wave of the virus sweeps across the continent. Those moves could be paired with fresh restrictions on movement from Germany, where Chancellor Angela Merkel was due to meet with regional governments as cases climb in that country, . The newspaper added later that measures still to be decided , but that schools and daycares would be kept open. Germany is one country that had fared best in the first wave. In Italy, the site of protests in recent days, the government is reportedly for businesses affected by new containment moves. Several governments have had some measures in places for weeks, but are finding they are not as effective. “While it’s unlikely the continent will lock down, with economic juggernauts France and Germany struggling to contain the virus, it is hard to envision anything but both economies, and the eurozone in general, struggling into 2021 or until a vaccine comes available,” said Stephen Innes, chief global markets strategist at Axi, in a note to clients. While the hospitality industry will take a hit, the “German manufacturing machine is likely to stay open through the winter,” said Jordan Rochester, foreign exchange analyst at Nomura, to clients in a note. “We also understand COVID-19 more, have a much better data set to monitor the trends with and the ‘fear of the unknown’ is much lesser than before when we barely had any COVID-19 testing or enough history to understand the health risk,” Rochester said. The European Central Bank could find itself under increasing pressure as it meets on Thursday, though economists until the December meeting. Technology shares in Europe were under pressure where Microsoftshares fell as earnings and sales forecasts topped forecasts, but . Shares of chipmaker Infineonslid more than 6% and German business software groupfell 4%. SAP shares have lost 25% of their value this week, after Banks led the way south in Europe, with Swiss lender UBSdropping 4% and France’s BNP Paribasdropping over 5%. Shares of Deutsche Bankwere down slightly, after the German lender posted that were lifted by a strong performance for its investment bank. “A good set of results but an accompanying outlook statement that suggests little change to consensus EPS (earnings per share),” said a team of Citi analysts led by Andrew Coombs. “We remain Sellers as we believe the IB (investment bank) industry backdrop is unlikely to be as supportive for Deutsche Bank in 2021.” Shares of Pumafell 3.3%, after the German sports retailing company , but said it can’t give guidance for the year due to too much uncertainty still over the virus’ fallout. French automobile maker Peugeotposted a , and said it expects the European car market to drop 25% in 2020. Shares dropped 3.7%. Also in France, Carrefoursaid , and the supermarket group backed the targets set as part of its Carrefour 2022 plan. But shares dropped 2.7% . Shares of Sopra Steriaslid 13%, making the French consulting and software development company the worst-performer on the Stoxx Europe 600 after it , mostly due to weak business activity in the aeronautics sector. Weak oil prices weighed on major energy companies, with shares of BPoff 2.% and Totaldown 4%. U.S. crudeand Brent pricesfell 5% and 4% respectively after the that U.S. crude supplies climbed by nearly 4.6 million barrels for the week ended Oct. 23, according to sources.Lower car prices might be cheered by car buyers, but they could also mean the Federal Reserve is pushing too hard against inflation, says ARK Invest CEO Cathie Wood.SearchVisit a quote page and your recently viewed tickers will be displayed here.Search TickersNo results found

European stocks fell sharply on Wednesday, the third straight drop and already the worst week since June, as investors watched France and Germany for potentially more restrictions as cases climbed on the continent.The Stoxx Europe 600 indexfell 2.4%, after closing nearly 1% lower on Tuesday. The index has lost more than 5% in just three days of trade. The German DAXdropped 3.7%, the French CAC 40tumbled 3.3%, and the FTSE 100fell 2%. The gloom filtered over to Wall Street, where the Dow. Rising COVID-19 cases in the U.S. and largely abandoned hopes for a pre-election stimulus plan hit...

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Senior reporter/editor for MarketWatch on the red-eye premarket. Mom, Jayhawk. Once upon a time a blue check. #IStandWithEvan bkollmeyer@marketwatch.com

Barbara Kollmeyer

MarketWatch is a website that provides financial information, business news, analysis, and stock market data. Along with The Wall Street Journal and Barron's, it is a subsidiary of Dow Jones & Company, a property of News Corp. Notable contributors include Mark Hulbert and Francine McKenna.

European stocks are already headed for the worst week in months as more COVID-19 restrictions loom

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