European stocks are moving in the red on Tuesday, with investors interested in focusing on growth data in the Eurozone as announcements are expected for the composite PMI index for November, and while cases in the region are rising again rapidly, with bloc countries to take stricter measures to contain the pandemic.
This development evokes unpleasant memories of the domino lockdown that took place last year, when Europe was at the center of the pandemic, and which led to a recession in economies, with investors fearing that a new round of restrictive measures could undermine the recovery of economies again.
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.
With today’s developments and the daily record of cases, the health situation “will be worse than we have known” until today, Merkel warned.
In the same vein, German Health Minister Jens Spann said: “By the end of this winter, almost everyone in Germany will be either vaccinated or have recovered or died. That is the reality.” Germany is considering tougher measures against covid-19, with a partial lockdown likely, as was the case in the Netherlands.
It is noted that since Friday Austria is in universal lockdown, while the Austrian government announced that it also becomes mandatory to vaccinate the population from 1 February.
At the same time, the European market will weigh Joe Biden’s decision to nominate Jerome Powell for a second term as head of the US Federal Reserve. The Wall was hit by a 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 1.2% to 479 points, with the technology sector recording the largest losses with a fall of 2.5%, while the core resources sector is moving with a positive sign (+ 0.4%).
In the individual dashboard, the German DAX loses 1.02% to 15,950 points, the French CAC 40 slides by 0.9% to 7,040 points and the British FTSE 100 falls 0.47% to 7,220 points.
In the periphery, the Italian FTSE MIB loses more than 1% to 27,070 points and the Spaniard IBEX 35 records losses of 1% at 8,730 points.
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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