Europe Markets Archives | Email alerts

Nov. 19, 2021, 10:19 a.m. EST

Stocks in Europe and euro under pressure as investors fear more lockdowns to follow Austria’s

new
Watchlist Relevance
LEARN MORE

Want to see how this story relates to your watchlist?

Just add items to create a watchlist now:

  • X
    STOXX Europe 600 Index (SXXP)
  • X
    DAX (DAX)
  • X
    CAC 40 Index (PX1)

or Cancel Already have a watchlist? Log In

By Barbara Kollmeyer

European stocks were headed for a second day of losses Friday, with the euro also under pressure as Austria announced a national lockdown to fight COVID spread, and Germany’s health minister didn’t rule out its own lockdown measures.

The Stoxx Europe 600 index /zigman2/quotes/210599654/delayed XX:SXXP +0.24% traded around 0.2% to 486.66, and was poised for a 0.3% drop for the week. The German DAX /zigman2/quotes/210597999/delayed DX:DAX +0.36% was off 0.2%, France’s CAC /zigman2/quotes/210597958/delayed FR:PX1 +0.03% traded 0.4% lower and Italy’s FTSE MIB /zigman2/quotes/210598024/delayed IT:I945 +0.43% tumbled 1.3%. All of the benchmarks were off session lows. The euro /zigman2/quotes/210561242/realtime/sampled EURUSD -0.0793% , meanwhile, weakened against the U.S. dollar, off 0.6%, changing hands at $1.1309, and British pound, down 0.2%. But Europe’s currency bounced back after putting in steeper intrasession declines that brought it to levels against the buck not seen since June 2020.

After battling record COVID-19 cases and a week ago imposing restrictions on the unvaccinated, Austrian Chancellor Alexander Schallenberg  said Friday that a 10-day national lockdown begin Monday and could stretch to 20 days. Starting Feb. 1, the country will also make vaccinations mandatory, public broadcaster ORF reported.

Austria’s 65% vaccination rate is among the lowest in Western Europe, with many EU countries suffering a fresh resurgence of infections, including Germany. The vaccination rate in Germany is at 68%, while Portugal and Spain are at 87% and 80%, fully vaccinated, respectively.

Germany’s health minister Jens Spahn reportedly said in a news conference that with the situation growing more grave, he couldn’t rule out restrictions to mobility to limit the new spread of the disease. The government is poised to announce restrictions for unvaccinated people.

Prospects of a lockdown in the region’s biggest economy Germany, have rattled investors in the region.

Read: Head of Germany’s disease control agency declares ‘nationwide state of emergency’ over COVID

“The news is hitting European markets hard…as fears mount that the virus and restrictions will spread across the continent again,” said Deutsche Bank strategist Jim Reid, in a note. He provided the below chart showing where some of the biggest waves have been occurring in Europe, with Eastern Europe bearing the brunt.

“For most of the countries near the top, the spike in cases has occurred fairly rapidly over the last couple of weeks. The exception is the U.K. where cases have been high and steady since the summer as high vaccination rates plus high infection rates have seemingly provided some degree of herd immunity,” said Reid in a note, adding that the trend is higher.

“The major risk is that not only growth will be directly affected by government decisions, but also that consumer confidence will be strongly affected as well. And with private consumption expected to be the major contributor to growth next year, looming decisions on restrictions do not bode well for the European outlook,” said Nicola Nobile, chief Italian economist at Oxford Economics, in a note.

While it could take some time for countries such as Germany to figure out what measures to take and reach political consensus, “it is clear that the tide has turned, with some restrictions likely to be introduced sooner or later in some other eurozone countries,” Nobile said.

European Central Bank President Christine Lagarde said Friday that it was “unlikely” the bank will raise interest rates next year, even as other central banks are withdrawing stimulus. She also said high oil and gas prices should start to subside in coming months, but the bank wouldn’t rush into “premature” tightening when faced with passing or supply-driven inflation shocks.

Among stocks weighing on the downside, the energy sector was retreating on the back of tumbling oil /zigman2/quotes/209723049/delayed CL00 +0.03% , which was sinking on fears of slower demand from Europe amid COVID-19 restrictions. BP shares fell 3% and Royal Dutch Shell /zigman2/quotes/201538663/delayed NL:RDSA -2.25% /zigman2/quotes/206428183/delayed UK:RDSA -2.49% /zigman2/quotes/205095589/composite RDS.A -2.31% dropped 2.6%.

Banks were also under pressure, with Deutsche Bank /zigman2/quotes/203042512/composite DB +0.08% /zigman2/quotes/207242873/delayed XE:DBK -1.14% down nearly 5%, Commerzbank /zigman2/quotes/207286669/delayed XE:CBK +0.59% off over 4% and UniCredit /zigman2/quotes/200769686/delayed IT:UCG -0.19% losing 6%.

Travel stocks were also hit hard, with Wizz Air Holdings /zigman2/quotes/210449062/delayed UK:WIZZ -0.24% , International Consolidated Airlines /zigman2/quotes/208070069/delayed UK:IAG -0.51% falling 3.8%, Deutsche Lufthansa /zigman2/quotes/201210530/delayed XE:LHA +2.27% and Carnival /zigman2/quotes/210414141/delayed UK:CCL -1.48% down over 3% each.

/zigman2/quotes/210599654/delayed
XX : STOXX
482.04
+1.14 +0.24%
Volume: 0.00
Jan. 20, 2022 4:00p
loading...
/zigman2/quotes/210597999/delayed
DAX
DX : Xetra Indices
15,865.90
+56.18 +0.36%
Volume: 37,707
Jan. 20, 2022 4:00p
loading...
/zigman2/quotes/210597958/delayed
FR : France: Euronext Paris
7,175.34
+2.36 +0.03%
Volume: 40,020
Jan. 20, 2022 4:00p
loading...
/zigman2/quotes/210598024/delayed
IT : Borsa Italiana
27,489.81
+118.96 +0.43%
Volume: 0.00
Jan. 20, 2022 4:00p
loading...
/zigman2/quotes/210561242/realtime/sampled
US : Tullett Prebon
1.1335
-0.0009 -0.0793%
Volume: 0.0000
Jan. 20, 2022 10:15a
loading...
/zigman2/quotes/209723049/delayed
US : U.S.: Nymex
$ 85.83
+0.03 +0.03%
Volume: 193,924
Jan. 20, 2022 10:05a
loading...
/zigman2/quotes/201538663/delayed
NL : Netherlands: Euronext Amsterdam
21.94
-0.51 -2.25%
Volume: 8.38M
Jan. 20, 2022 4:00p
P/E Ratio
45.57
Dividend Yield
3.59%
Market Cap
€171.75 billion
Rev. per Employee
€2.16M
loading...
/zigman2/quotes/206428183/delayed
UK : U.K.: London
£ 1,822.80
-46.60 -2.49%
Volume: 3.63M
Jan. 20, 2022 3:00p
P/E Ratio
45.05
Dividend Yield
0.04%
Market Cap
£142.97 billion
Rev. per Employee
£1.88M
loading...
/zigman2/quotes/205095589/composite
US : U.S.: NYSE
$ 49.63
-1.18 -2.31%
Volume: 858,908
Jan. 20, 2022 10:15a
P/E Ratio
42.35
Dividend Yield
2.80%
Market Cap
$194.51 billion
Rev. per Employee
$2.58M
loading...
/zigman2/quotes/203042512/composite
US : U.S.: NYSE
$ 13.25
+0.0100 +0.08%
Volume: 361,799
Jan. 20, 2022 10:15a
P/E Ratio
10.53
Dividend Yield
0.00%
Market Cap
$27.94 billion
Rev. per Employee
$432,231
loading...
/zigman2/quotes/207242873/delayed
XE : Germany: Xetra
11.65
-0.13 -1.14%
Volume: 5.00M
Jan. 20, 2022 4:00p
P/E Ratio
11.14
Dividend Yield
0.00%
Market Cap
€24.33 billion
Rev. per Employee
€361,497
loading...
/zigman2/quotes/207286669/delayed
XE : Germany: Xetra
7.46
+0.04 +0.59%
Volume: 5.30M
Jan. 20, 2022 4:00p
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
€9.28 billion
Rev. per Employee
€250,849
loading...
/zigman2/quotes/200769686/delayed
IT : Italy: Milan
13.55
-0.03 -0.19%
Volume: 12.58M
Jan. 20, 2022 3:55p
P/E Ratio
22.82
Dividend Yield
0.89%
Market Cap
€29.98 billion
Rev. per Employee
€253,457
loading...
/zigman2/quotes/210449062/delayed
UK : U.K.: London
4,482.00 p
-11.00 -0.24%
Volume: 140,818
Jan. 20, 2022 3:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
£4.63 billion
Rev. per Employee
£250,991
loading...
/zigman2/quotes/208070069/delayed
UK : U.K.: London
159.18 p
-0.82 -0.51%
Volume: 16.68M
Jan. 20, 2022 3:00p
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
£7.94 billion
Rev. per Employee
£72,726
loading...
/zigman2/quotes/201210530/delayed
XE : Germany: Xetra
6.98
+0.16 +2.27%
Volume: 6.76M
Jan. 20, 2022 4:00p
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
€8.15 billion
Rev. per Employee
€123,309
loading...
/zigman2/quotes/210414141/delayed
UK : U.K.: London
1,424.40 p
-21.40 -1.48%
Volume: 509,273
Jan. 20, 2022 3:00p
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
£17.45 billion
Rev. per Employee
N/A
loading...

Get news alerts on Euro — or create your own.
This Story has 0 Comments
Be the first to comment
More News In
Markets

Story Conversation

Commenting FAQs »

Partner Center

Link to MarketWatch's Slice.