European stocks came under pressure on Monday as investors reacted to border closures and new blockades, while the UK dealt with a new infectious strain of COVID-19. That overshadowed the news of a stimulus deal in the US, and stock futures fell.
Stoxx Europe 600 index SXXP,
it fell by more than 3% to 383.23, after gaining 1.48% last week. DAX German DAX,
decreased by 3.7%, French CAC 40 PX1,
decreased by 3.3% and the FTSE 100 UKX index,
decreased by 2.7%.
GBPUSD,
it fell 2.3% to $ 1.3219, while the euro fell 1% to $ 1.2144. The weekend passed with little progress on a post-Brexit trade deal.
The United Kingdom announced on Saturday that the south-east of England, including London, will be placed under much stricter restrictions, closing non-essential shops and banning non-essential travel before Christmas. This was after news that a more infectious strain of COVID-19 had been responsible for 60% of infections in London by December.
Health officials in the United Kingdom and the United States have said there is no evidence that the new strain is more deadly. But the strain has been responsible for a sharp rise in cases in the UK this month.
European countries have responded to fears that the strain will reach the mainland by blocking flights from the UK and train travel. There have been concerns about potential food shortages, as France has banned 48 hours of air, sea and land travel from the UK, including a ban on freight.
The British government will hold an emergency meeting on Monday to prevent any food shortages before the holidays. And there were concerns that essential medicines, including COVID-19 vaccines, could be withheld.
Read: Should you be worried about the new COVID-19 strain? Here’s what you need to know
Dow Jones Industrial Average YM00,
fell more than 500 points and S&P 500 futures ES00,
fell 2%, while Nasdaq-100 futures NQ00,
decreased by 1.6%. The Dow DJIA,
closed the session on Friday with 127 points lower, amid concerns about the adoption of a stimulus bill.
Fears of fresh blockades in the first quarter slightly overshadowed optimism on news that US lawmakers had agreed to a pandemic rescue deal. Senate Majority Leader Mitch McConnell said late Sunday that a bipartisan agreement had been reached on a nearly $ 900 billion coronavirus aid package. MPs plan to vote and pass the bill on Monday.
There was also new optimism about COVID-19 vaccines, as vaccine deliveries from Modern MRNA biotechnology,
the second authorized in the US began to leave the distribution centers on Sunday. Meanwhile, Europe’s drug regulator will decide on Monday whether to give the green light to COVID-19 vaccine from US drug company Pfizer PFE.
and its German partner BioNTech BNTX,
Read: “Wear masks when you see your family at Christmas”, WHO urges Europeans as regulator speeds up COVID vaccine schedule
Vaccinations in Europe could begin within a week if approval continues. Pressure has risen on the European Medicines Agency to shorten its approval process amid rising coronavirus cases and tougher blockade measures in the bloc of 27 nations. The Pfizer – BioNTech vaccine has been approved in the UK and Canada, as well as in the US
“Given that the vaccination campaign will take a long time, investors are worried about the latest developments, which indicate that the pandemic could worsen before it improves,” Milan Cutkovic, a market analyst at Axi, said in a statement. addressed to customers.
Concerns about the new COVID-19 strain have also weighed heavily on oil prices, with fears that a recovery in demand could meet a new downward trend. Gross reference prices in the US and Europe fell by more than 3% each. This hit the big oil companies, with shares in TOT Total of France,
by 3%, and those for BP BP,
BP,
and Royal Dutch Shell RDSA,
RDSA,
in the UK falling by more than 4% each.
Royal Dutch Shell said on Monday that it expects to post-enrollment fees in the fourth quarter of between $ 3.5 billion and $ 4.5 billion in total, following amortization, asset restructuring and onerous contracts.
Airlines have seen the biggest declines due to disruptions in travel bans in the UK. Actions of IAG consolidated international airlines,
operating British Airways and other airlines, decreased by 10%, Deutsche Lufthansa LHA,
shares fell closed to 6% and cruise operator Carnival CCL,
decreased by almost 8%.
Shares of low-rate airlines easyJet EZJ,
and Ryanair Holdings RYA,
decreased by 9% and 5% each.
Increasingly, there have been actions by the Ocado OCDO online food delivery group,
by about 3%.