MILAN/FRANKFURT: German shares suffered their weakest day since early June on Wednesday as the government agreed on an emergency lockdown to combat surging Covid-19 cases, with other European markets following suit on fears of more curbs around the continent.
The German DAX sank as much as 5% before cutting some losses to close down 4.2% at its lowest in five months. The precise measures were still subject to negotiation, with sources saying the government had agreed to shut bars and restaurants from Nov. 2.
The pan-European STOXX 600 index fell 3% in its sharpest one-day drop in five weeks. France’s main index dropped 3.4% ahead of a televised address by President Emmanuel Macron at 8:00 pm (1900 GMT) when he is expected to issue stay-at-home orders.
All sectors in Europe were firmly in the red, with the economically sensitive autos sector leading losses, down almost 5%.
The downbeat mood overshadowed a batch of upbeat quarterly results from European companies, with Deutsche Bank AG and retailer Carrefour down despite upbeat results.
German online takeaway food company Delivery Hero and industrial technology group Hexagon, however, were among the rare gainers after robust earnings reports.
Aero-engine maker Rolls-Royce, meanwhile, soared 12.5% a day after shareholders approved a 2 billion pound ($2.61 billion) rights issue to bolster its finances.—Reuters
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