UPDATE 3-Europe a sea of red: German shares plunge up to 5% on emergency lockdown

  • Reuters
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UPDATE 3-Europe a sea of red: German shares plunge up to 5% on emergency lockdown
Credit: © Reuters.

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* French stocks sink 3.4%

* Macron set to give a televised address later in the day

* Automakers lead losses

* Rolls-Royce surges 12.5%; Delivery Hero, Hexagon up on earnings (Updates to close)

By Sruthi Shankar and Susan Mathew

Oct 28 (Reuters) - German shares suffered their weakest day since early June on Wednesday as the government agreed on an emergency lockdown to combat surging COVID-19 cases, with other European markets following suit on fears of more curbs around the continent.

The German DAX .GDAXI sank as much as 5% before cutting some losses to close down 4.2% at its lowest in five months. The precise measures were still subject to negotiation, with sources saying the government had agreed to shut bars and restaurants from Nov. 2. pan-European STOXX 600 index .STOXX fell 3% in its sharpest one-day drop in five weeks. France's main index .FCHI dropped 3.4% ahead of a televised address by President Emmanuel Macron at 8:00 pm (1900 GMT) when he is expected to issue stay-at-home orders. of renewed lockdown measures... will add further to growth concerns in the region, at a time when mobility indicators have already started to fall and survey indicators moderate," said Mohammed Kazmi, portfolio manager for UBP's Absolute Return Fixed Income team.

"This will likely drive European Central Bank President (Christine) Lagarde to remain dovish in her comments in the press conference tomorrow, laying out the path for more easing to come down the line."

Lagarde is due to speak at 1230 GMT on Thursday.

Ahead of that, the European Commission proposed new tax and trade measures on Wednesday to fight the pandemic around the EU, while sources said Germany aims to increase its debt plans next year to finance new coronavirus aid measures. sectors in Europe were firmly in the red, with the economically sensitive autos sector .SXAP leading losses, down almost 5%.

U.S. stocks also tripped with surging cases there weighing on sentiment and no stimulus package in sight just a week ahead of the U.S. presidential election. .N

The downbeat mood overshadowed a batch of upbeat quarterly results from European companies, with Deutsche Bank AG DBKGn.DE and retailer Carrefour CARR.PA down despite upbeat results. online takeaway food company Delivery Hero DHER.DE and industrial technology group Hexagon HEXAb.ST , however, were among the rare gainers after robust earnings reports. maker Rolls-Royce RR.L , meanwhile, soared 12.5% a day after shareholders approved a 2 billion pound ($2.61 billion) rights issue to bolster its finances.

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