Coronavirus restrictions, SAP slump knock European stocks

Credit: REUTERS/STAFF

European stocks sank on Monday, as Italy and Spain imposed fresh restrictions to control a resurgence in coronavirus cases, while shares in German heavyweight SAP slumped 20% after it cut its 2020 outlook.

For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window

Oct 26 (Reuters) - European stocks sank on Monday, as Italy and Spain imposed fresh restrictions to control a resurgence in coronavirus cases, while shares in German heavyweight SAP slumped 20% after it cut its 2020 outlook.

The pan-European STOXX 600 index .STOXX tumbled 1.2% by 0809 GMT, with risk appetite globally sapped by worries over U.S. stimulus progress and presidential election.

The German DAX .GDAXI dropped 2.7% to hit a three-month low after software company SAP SAPG.DE abandoned medium-term profitability targets and cautioned that its business would take longer than expected to recover from the pandemic.

The wider tech index .SX8P slumped 5.8%.

Europe became the second region after Latin America to surpass 250,000 deaths on Saturday, according to a Reuters tally, as many Southern European countries reported their highest number of COVID-19 cases in a single day.

Italy on Sunday ordered bars and restaurants to close by 6 p.m. and shut public gyms, cinemas, while Spanish Prime Minister Pedro Sanchez announced a new state of emergency.

Milan's blue-chip index .FTMIB dropped 1.5%, even as ratings agency Standard and Poor's upgraded Italy's sovereign outlook to stable from negative.

(Reporting by Sruthi Shankar in Bengaluru; Editing by Sriraj Kalluvila)

((sruthi.shankar@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 6182 2787;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Reuters

Reuters, the news and media division of Thomson Reuters, is the world’s largest international multimedia news provider reaching more than one billion people every day. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at Reuters.com and via Reuters TV.

Learn More