European stocks came under pressure on Monday as investors reacted to border closures and new closures, while the UK faces a new infectious tool from COVID-19. This overshadowed the news of a stimulus deal in the US and stock futures fell.
The Stoxx Europe 600 SXXP Index,
it fell above 3% to 383.23, after gaining 1.48% last week. The German DAX DAX,
fell 3.7%, the French CAC 40 PX1,
fell 3.3% and the FTSE 100 UKX index,
fell 2.7%.
The GBPUSD pound,
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 UK announced on Saturday that the south-east of England, including London, would be subject to much stricter restrictions, closing non-essential shops and banning non-essential travel before Christmas. This is after the news that a more infectious strain of COVID-19 had been responsible for 60% of infections in London in December.
Health officials in the UK and US 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 responded to fears that the strain would reach the continent by blocking UK flights and train travel. There were concerns about possible food shortages, as France banned air, sea and land travel for 48 hours from the UK, including a ban on freight transport.
The UK government will hold an emergency meeting on Monday to prevent any food shortages ahead of the holidays. And there was concern that essential medicines, including COVID-19 vaccine supplies, might be withheld.
Read: Should you be concerned about the new COVID-19 strain? This is what you need to know
Dow Jones Industrial YM00 average,
slipped more than 500 points and S&P 500 futures ES00,
fell 2%, while the future Nasdaq-100 NQ00,
fell 1.6%. The Dow DJIA,
ended the session on Friday 127 points less amid concerns over the passage of a stimulus bill.
Fears about the new blockades dragging on in the first quarter slightly overshadowed optimism over the news that U.S. lawmakers had reached an agreement to ease the pandemic. Senate Majority Leader Mitch McConnell said Sunday afternoon that a bipartisan agreement had been reached on a nearly $ 900 billion coronavirus relief package. Lawmakers are scheduled to vote on and pass the bill Monday.
There was also new optimism about COVID-19 vaccines, as the vaccine shipments of Modern MRNA biotechnology,
the second authorized in the US, began leaving distribution centers on Sunday. Meanwhile, the European drug regulator will decide on Monday whether to give the green light to the COVID-19 vaccine from the American pharmaceutical company Pfizer PFE,
and its German partner BioNTech BNTX,
Read: “The use of masks when the family is seen during Christmas,” the WHO urges Europeans, as the regulator accelerates the timing of the COVID vaccine
Vaccinations in Europe could start in a week if that approval moves forward. The European Medicines Agency has stepped up pressure to shorten its approval process amid an increase in coronavirus cases and tougher blockade measures in the 27-country bloc. The Pfizer – BioNTech vaccine has been approved in the United Kingdom and Canada, as well as in the United States
“With the possibility of the vaccination campaign taking a long time, investors are worried about the latest developments, which indicate that the pandemic could get worse before it improves,” Axi market analyst Milan Cutkovic said in a note to clients.
Concerns about the new COVID-19 strain also weighed heavily on oil prices, with fears that a recovery in demand could face another setback. US and European crude oil prices fell more than 3% each. This affected the main oil companies, with shares of the total French total,
3%, and those of BP BP,
BP,
and Royal Dutch Shell RDSA,
RDSA,
in the UK, falling by more than 4% each.
Royal Dutch Shell said Monday it expects to reserve fourth-quarter post-tax charges of between $ 3.5 billion and $ 4.5 billion in total for write-downs, asset restructuring and onerous contracts.
Airlines marked the biggest declines due to the disruption of travel bans in the UK. Shares of International Consolidated Airlines IAG,
operating British Airways and other airlines, down 10%, Deutsche Lufthansa LHA,
shares fell 6% and cruise operator Carnival CCL,
fell about 8%.
Shares of low cost airlines easyJet EZJ,
and Ryanair Holdings RYA,
fell 9% and 5% each.
On the rise, there were shares of the Ocado OCDO online grocery delivery group,
up to 3% more.