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European stocks slipped into the red on Tuesday as cases of COVID-19 continue to weigh on markets, with Germany the latest country to take new lockdown measures to contain the spread of the coronavirus.
The pan-European Stoxx 600 SXXP,
and the FTSE 100 UKX from London,
were both about 0.3% lower. The CAC 40 PX1,
in the DAX DAX of Paris and Frankfurt,
dipped 0.4%.
Dow YM00 Futures,
were pointing down around 100 points, set for a weak open after climbing more than 100 points on Monday to close at 32,731.
Also read: U.S. health officials say AstraZeneca may have relied on ‘outdated information’ about COVID-19 trial
German Chancellor Angela Merkel announced on Tuesday that the country will extend its national lockdown until April 18, with an even tighter closure from April 1 to April 5 during the Easter period. The Chancellor said Germany must “break the exponential growth of the third wave”, as quoted by public broadcaster DW.
Coronavirus infections have increased across Europe, and the move to Germany came as Austria canceled plans to reopen after Easter and Paris entered a month-long lockdown at the end of the week last.
CMC Markets analyst Michael Hewson said the start of the week in European markets was marked by fears that a third wave in Europe would delay an economic reopening and push it into midsummer.
“This poses a problem for the travel industry and the potential for a rapid recovery, given the slow roll-out due to supply, as well as fears of hesitation,” Hewson added.
After: Germany extends lockdown until mid-April as COVID-19 cases rise
“When compared to rising infection rates across Europe, that probably means that even with a successful UK deployment, international travel is very unlikely to be able to return significantly so much. that much of Europe remains behind the inoculation curve of its populations, ”Hewson said.
Travel documents led the charge in the red in Europe, with stakes in airlines Air France-KLM AF,
Lufthansa LHA,
EasyJet EZJ,
Ryanair RYA,
and IAG IAG,
—Who owns British Airways – falling. InterContinental Hotels Group IHG,
the stock also declined.
The price of oil is also falling, with the benchmark Brent BRN00,
crude is trading 1.5% lower, below $ 63.70 a barrel. Shares in European oil groups BP BP,
Royal Dutch Shell RDSA,
Total TTA,
and Eni ENI,
everything fell.
Cineworld CINE,
Stock slipped as the world’s second-largest movie theater chain announced it plans to reopen its US theaters in April in time for “Godzilla vs. Kong”, with UK theaters set to open a month later. The group also said it has entered into a multi-year deal with Warner Bros. to shorten the exclusive cinematic window of the production company’s films to just 45 days. The typical theatrical window is 90 days.
Volvo VOLV.B,
The stock fell 7% after the truck maker warned Monday night that production in the second quarter of 2021 would feel a “substantial” impact from the global semiconductor shortage.
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