European shares slammed by lockdown fears, end six-7 days rally

The German share price tag index DAX graph is pictured at the inventory trade in Frankfurt, Germany, November 17, 2021. REUTERS/Staff members

Nov 19 (Reuters) – European shares finished in the pink on Friday, clocking their 1st weekly decrease in 7 months on issues in excess of the financial problems from refreshing COVID-19 lockdowns in the location that hammered cyclical sectors these as financial institutions and automakers.

The pan-European STOXX 600 index (.STOXX) fell .3% just after hovering in close proximity to document highs earlier in the session. The index finished the week .1% lessen.

It misplaced floor soon after news that Austria will turn out to be the to start with country in western Europe to reimpose a whole COVID-19 lockdown this autumn to tackle a new wave of bacterial infections. browse additional

Germany’s Health Minister Jens Spahn reported the coronavirus scenario in the region was so grave that a lockdown, such as for people today who have been vaccinated, can’t be ruled out. read through additional

“Any thoughts that the vaccines would offer you a way to a much more standard Christmas time period show up to have absent up in smoke for now, in Europe at least, while there is a nagging worry this could ripple out across the location,” reported Michael Hewson, chief market place analyst at CMC Marketplaces.

Frankfurt shares (.GDAXI) fell .4%, while sectors more exposed to financial cycles such as banks (.SX7P), automakers (.SXAP) and travel & leisure (.SXTP) fell concerning 1.5% and 2.2%.

South European markets, which include all those in Spain (.IBEX) and Italy (.FTMIB), fell about 1.5% every.

European stocks have strike a series of file highs this month as a stronger-than-anticipated earnings season helped traders glimpse earlier concerns about soaring inflationary pressures.

European Central Bank President Christine Lagarde explained inflation in the euro zone will fade so the ECB must not tighten policy as it could choke off the recovery, and hinted at continued bond purchases upcoming yr. study extra

The ECB is because of to make a decision on the future of its bond-obtain programmes at its Dec. 16 plan assembly.

Irish airline Ryanair dropped 2.3% just after announcing its intention to delist from the London Inventory Trade , citing charges relevant to retaining an supplemental listing.

French luxurious group Hermes (HRMS.PA) received 5.2%, soon after jumping much more than 6% in the prior session, on current market talks that it could be additional to the Eurostoxx 50 index during a December review.

Reporting by Anisha Sircar, Shreyashi Sanyal and Sruthi Shankar in Bengaluru Editing by Shounak Dasgupta,Aditya Soni and Marguerita Choy

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