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In the ‘red’ the European markets with losses close to 1% – ‘Weight’ the technology

LAST UPDATE: 14.30

European stocks are moving in the red on Tuesday, with investors worried about a resurgence of cases on the continent that evokes unpleasant memories of the domino lockdown that took place last year, which led to a recession in economies, while the index The PMI shows a strong rise in business activity in the Eurozone in November.

In particular, investors fear that one new round of restrictive measures to curb the rising tide of the 4th wave of the pandemic could again undermine the recovery of economies.

Today, German Health Minister Jens Spann called for additional restrictions in order to stop the “dramatic” increase in covid-19 cases in the country. Span called for an increase in public access to only those vaccinated against covid-19 or those who have recovered and tested negative for coronavirus, in an effort to curb the fourth wave of the epidemic in Germany.

The Minister of Health did not rule out the possibility of imposing a lockdown, although he explained that this will be decided by the governments of the states.

As of yesterday, Angela Merkel warned of the possibility of tougher restrictions on Europe’s largest economy in order to control the latest wave of the pandemic.

The German chancellor has warned CDU officials that the restrictive measures in place in Germany are “not sufficient” in the face of the “dramatic situation” caused by the resurgence of coronavirus cases in the country, according to party sources, adding that if it does not stop the fourth wave of the pandemic hospitals face a very serious problem.

It is noted that from Friday the Austria is on universal lockdown, while the Austrian government has announced that vaccination of the population will also become mandatory from 1 February.

Positive, however, were the economic data announced for the Eurozone today, after The growth of business activity in the region accelerated this November, as consumers “ignored” the new restrictions on covid-19 and while price pressures increased again. In particular, the composite PMI of IHS Markit, rose to 55.8 points in November from 54.2 points in October. The survey surpassed all estimates of a drop to 53.2 points.

Regarding the financial data announced today for Great Britain, companies announced in November the largest increase in new orders since June, along with record cost pressures, according to a survey that could pave the way for an increase in interest rates by the Bank of England in December. Specifically, IHS Markit’s complex PMI remained virtually unchanged, falling marginally to 57.7 points in November from 57.8 points in October.

At the same time, the European market is weighing in on Joe Biden’s decision to nominate him Jerome Powell for a second term as head of the US Federal Reserve. The Wall was hit yesterday by the rally in US bond yields in the wake of the US president’s decision with the S&P 500 and Nasdaq losing despite intra-conference records.

The move, however, has raised expectations that the Federal Reserve will remain firm in its monetary policy as the economy recovers from the pandemic and tries to fight inflation.

In this climate, the pan-European index Stoxx 600 is down 0.8% to 481 points, with the technology sector recording the largest losses with a fall of 1.9%, while the core resources sector is moving with a positive sign (+ 0.3%).

On the individual dashboard, the German DAX loses 0.63% to 16,012 points, the French CAC 40 slips by 0.40% to 7,076 points, while the British FTSE 100 records gains of 0.48% at 7,290 points.

In the periphery, the Italian FTSE MIB loses 0.91% to 27,130 points and the Spanish IBEX 35 records losses of 0.22% at 8,800 points.

In the individual shares, the German group Thyssenkrupp is down 7.6% after reports that the Swedish fund Cevian will buy 6.9% of the company.

At the top of the European blue chip index, the Anglo-Australian mining company Rio Tinto gains 2.4%.

In other news, the Italian antitrust authority has imposed A total of more than 200 million euros in fines for US tech giants Amazon and Apple for allegedly colluding in the sale of Apple and Beats products.

The stock markets of the Asia-Pacific region present a mixed picture on Tuesday, with the “technology” also the technology sector.

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