Germany and France tighten restriction measures against Covid-19 and shake up European squares

Over here, the PSI-20 drops 0,97% to 3.939,01 points with Galp Energia and Mota Engil leading the most significant losses, with decreases of 5,41% to 7 euros and 2,80% to 1,112 euros , respectively.

Sergio Pontoriero / EPA via Lusa

European stock markets continue Wednesday morning to trade on negative ground, in response to news that large economies such as Germany and France are preparing to launch new measures to restrict mobility and economic activities to contain the spread of the new coronavirus.

Over here, the PSI-20 drops 1,54% to 3.915,64 points with Galp Energia and Mota Engil leading the most significant losses, with decreases of 5,41% to 7 euros and 2,80% to 1,112 euros , respectively.

One of the main indices following European stocks, Stoxx Europe 600, is falling 2,81% to 2.983,69 points, reaching lows in the last five months. This is after "Reuters" reported that Angela Merkel wants to impose new measures to control the pandemic in Germany, following the recent increase in Covid-19 cases.

The DAX, in Frankfurt, reacts with a fall of 3,28% to 11.675,00 points and the CAC 40 falls 3,21% to 4,577.12 points. In neighboring Spain, the drop is 2,24% to 6,502.00 points at a time when the country faces the third state of emergency enacted on Wednesday.

“In the EU, the number of new infections is rising in an apparently unstoppable way and the burden on healthcare systems is increasing,” writes Commerzbank in an analysis note sent to investors this morning. "It is foreseeable that today new restrictions will be announced today in Germany and France and people are already adopting a more cautious stance and buying less in stores", add analysts of the German bank.

It is the second wave that has been feared for several months and, moreover, confirmation that many countries will not be able to escape taking “steps back” in the deflation to control the pandemic and prevent the collapse of hospitals.

 

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