Fading stimulus hopes and new French restrictions topple European stocks

TOPSHOT – This picture shows screens displaying French President Emmanuel Macron as he addresses the nation during a televised interview from the Elysee Palace concerning the situation of the novel coronavirus Covid-19 in France, in Paris on October 14, 2020.

christophe archambault/Agence France-Presse/Getty Images

European stocks slumped Thursday, with investors concerned about the impact of a second wave of coronavirus on the economy without any imminent stimulus to cushion the blow.

The Stoxx Europe 600

lost 1.8%, and the main regional indexes, the German DAX
French CAC 40

and U.K. FTSE 100
each dropped by at least 1.8%.

Decliners included airlines Deutsche Lufthansa
International Airlines Group

and Air France-KLM
and hotel operators Whitbread

and InterContinental Hotels

Futures on the Dow Jones Industrial Average

fell 160 points.

Fading stimulus hopes and new French restrictions topple European stocks

With coronavirus on the rise, France announced a new curfew in Paris and other major cities, as U.K. media speculate about imminent restrictions due to hit London.

Meanwhile European leaders are meeting to discuss both the coronavirus as well as trade talks with the U.K., where a trade deal with the European Union expires at the end of the year.

Treasury Secretary Steven Mnuchin said it’s unlikely a stimulus deal will be reached before the election. “I’d say, at this point, getting something done before the election and executing on that would be difficult, just given where we are in the level of details, but we’re going to try to continue to work through these issues,” Mnuchin said.

The Republican-controlled U.S. Senate is planning a vote on a much smaller stimulus than even the White House has proposed.

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