GANDHINAGER, WNS; European stocks hit their lowest level since mid-June on Wednesday following a report France was mulling a month-long national lockdown to combat a surge in coronavirus infections.
The pan-European STOXX 600 index fell 1.6% by 0808 GMT, while Germany’s DAX tumbled 2.2%, UK’s FTSE 100 dropped 1.5% and France’s CAC 40 plunged 2.5%.
The French government has been exploring a new, national lockdown from midnight on Thursday, BFM TV reported, albeit a slightly more flexible one than the two-month shutdown that began in mid-March.
President Emmanuel Macron will give a televised address later in the evening, his office said.
Meanwhile, German Chancellor Angela Merkel wants to close all restaurants and bars from Nov. 4 according to a draft resolution seen by Reuters, while the Telegraph newspaper reported British Prime Minister Boris Johnson is under pressure for a new lockdown.
Economically sensitive sectors such as automakers, banks and insurers led early declines, falling between 2.5% and 3%.
Deutsche Bank AG fell 3.6%, even as it reported a surprise swing into quarterly net profit and upgraded the revenue outlook for its investment bank.