World News – GB – Coronavirus restrictions, SAP crisis hit European stocks

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(Reuters) – European stocks fell on Monday as Italy and Spain imposed new restrictions to control a resurgence of coronavirus cases, while shares of German heavyweight SAP collapsed after slashing its 2020 outlook

The pan-European STOXX 600 STOXX index fell 05% and the euro zone STOXX50E blue-chip index fell 14%, with risk appetite globally undermined by concerns over slow progress on a new US stimulus bill and impending presidential election

German DAX GDAXI fell 20% after software publisher SAP SAPGDE abandoned medium-term profitability targets and warned that its business would take longer than expected to recover from the pandemic

Shares of Europe’s most valuable tech company fell 18%, expected to see their worst drop in 24 years, with the larger SX8P tech index down 52%

SAP profits were a failure in the third quarter earnings season, which was vastly better than feared

Meanwhile, Italy has ordered bars and restaurants to close at 6 p.m. and shut down public gymnasiums, cinemas, while Spain’s Prime Minister Pedro Sanchez has announced a new state of emergency, many southern European countries reporting highest number of COVID-19 cases in a single day

Europe on Saturday became the second region after Latin America to exceed 250,000 deaths, according to a Reuters count

Nick Nelson, Head of European Equities Strategy at UBS, said the Swiss bank’s target for STOXX 600 by year-end is 340 points, around 5% below current level , in part due to the impact of the last round of restrictions

« This is not a major change, but we see a slight decline at the end of the year partly due to mobility restrictions and a slowdown in macroeconomic dynamics with PMIs falling below 50 « , he said

Surveys of eurozone purchasing managers last week showed economic activity retreated in October, raising expectations of a double-dip recession as a second wave of the virus sweeps across the continent

Milan’s blue chip FTMIB index fell 09%, even as Standard and Poor’s rating agency raised Italy’s sovereign outlook to stable from negative

Oil majors Total TOTFPA and Royal Dutch Shell RDSaL fell more than 1%, as crude prices fell nearly 3% on fears that the surge in COVID-19 cases in the United States and Europe is hurting demand [O / R]

London’s FTSE 100 The FTSE was stable as banks found support after a media report that UK regulators were considering allowing banks to start paying dividends again next year [L]

SXDP health shares also remained favorable, with AstraZeneca AZNL gaining 11% after resuming US trial of its experimental COVID-19 vaccine

All quotes were delayed by at least 15 minutes See here for a full list of exchanges and delays

Stocks, Stocks, Europe, Coronavirus, Finance, SAP

News from around the world – GB – Coronavirus restrictions, fall of SAP hit European stocks



SOURCE: https://www.w24news.com/news/world-news-gb-coronavirus-restrictions-sap-crisis-hit-european-stocks/?remotepost=469295

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