Europe stocks under pressure as Goldman Sachs warns of a tough COVID winter ahead


European stocks have been under pressure on Tuesday, albeit in a week with volumes lightened by the U.S. Thanksgiving vacation, however with traders more and more involved in regards to the wave of COVID circumstances sweeping main economies.

The Stoxx Europe 600 index
SXXP,
-0.95%

fell 0.8% to 481.35, set for its worst one-day session since late September. The German DAX
DAX,
-0.87%

fell 0.7%, the French CAC 40
PX1,
-0.46%

slipped 0.1%. The FTSE 100 index
UKX,
+0.37%

rose 0.3% and Spain’s IBEX 35 index
IBEX,
+0.44%

rose 0.4%. The euro
EURUSD,
+0.20%

was flat at $1.1246.

Traders brushed apart knowledge displaying the flash IHS Markit November eurozone composite output index reaching a two-month excessive of 55.8 in November from 54.2 in October. The survey additionally indicated that persistent provide bottlenecks and rising COVID circumstances have been clouding the near-term outlook.

Other than surging circumstances in international locations such as Germany and Austria, which is under a 10-day nationwide lockdown that started Monday, France’s Prime Minister Jean Castex has examined optimistic and Germany’s well being minister, Jens Spahn, warned Monday that by the tip of winter, “pretty much everyone in Germany … will be vaccinated, cured or dead.”

That’s as the World Well being Group itself warned that COVID deaths in Europe would hit 2.2 million by March based on current trends.

“Continued upward pressure on case progress throughout Europe by way of the winter appears seemingly given the excessive infectiousness of the delta variant and chilly winter climate. On the similar time, Europe has considerably larger covid immunity than final winter, which ought to assist defend hospital capability, particularly within the South,” a staff of Goldman Sachs economists led by Sven Jari Stehn instructed purchasers in a word on Tuesday.


Uncredited

Stehn and the staff mentioned financial progress within the euro space will seemingly take 0.2% proportion factors hit within the fourth quarter of this 12 months and first quarter of 2022, and about half as a lot within the U.Okay., which has additionally seen surging COVID circumstances. The continent will see vital variation, with a tougher hit for Germany than for Spain or Italy.

Reflecting U.S. motion, expertise stocks have been under pressure in Europe amid rising bond yields. ASML Holding
ASML,
-3.00%
,
a closely weighted Dutch chip group, fell practically 5%, whereas German enterprise software program group SAP
SAP,
-0.94%

SAP,
-1.59%

down 2%, and within the chip sector, Infineon Applied sciences
IFX,
-3.16%

inventory down 3.4%.

High performers included retailer Hennes & Mauritz
HM.B,
+6.16%
,
up 5% and Compass Group
CPG,
+5.84%
,
up over 4% after the catering contractor reported a rise in pretax revenue for fiscal 2021, booked decrease prices and returned to the dividend list.



Europe stocks under pressure as Goldman Sachs warns of a tough COVID winter ahead Source link Europe stocks under pressure as Goldman Sachs warns of a tough COVID winter ahead

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