Coronavirus restrictions, SAP slump knock European stocks
Reuters
Published Oct 26, 2020 08:18
(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 (DE:SAPG) 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 (NYSE:SO) 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.
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Written By: Reuters
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