European shares hit a 1-month low after Reuters bought off Wall Avenue
© Reuters. The DAX chart of the German share index is shown on the Frankfurt Stock Exchange
From Sruthi Shankar
(Reuters) – European stocks hit nearly a month’s lows on Thursday after Wall Street’s worst sell-off since October on concerns about high valuations. Investors also fear an increase in more contagious coronavirus variants.
The pan-European figure fell 1.9% and turned negative for the year, while major regional exchanges such as France and France continued to slide into the red and the UK stuck to modest gains for the year.
Investors looked to strong gains from Apple (NASDAQ 🙂 and Facebook (NASDAQ 🙂 overnight, as well as the Fed’s promise to maintain loose monetary policy amid concerns over the slow roll-out of COVID-19 vaccines and more Restrictions in Europe weighed on the US mood.
European stocks like Ambu, Evotec and Unibail, bid high amid frenzied online retailing, reversed some of the previous session’s strong gains.
“With valuations at a level that already factored in much of the recovery from a pandemic that is far from over, these corrections are always possible,” said Ian Williams (NYSE :), economic and strategic research analyst to Peel Hunt, in a note.
In the meantime, Germany is preparing entry restrictions for travelers from the UK, Brazil and South Africa, and its health minister expects the current shortage of coronavirus vaccines to continue well into April.
Spanish officials said delays in vaccine delivery threaten supplies in Catalonia and have forced Madrid authorities to stop vaccination.
The European Union did not achieve a breakthrough in the crisis talks with AstraZeneca (NASDAQ :), which had announced delays in delivery to the block in recent weeks.
Technology stocks fell 2.6% and retreated further from the two-decade high earlier this year, while stocks of insurers, oil and gas companies and automakers saw the largest sectoral declines, falling nearly 2.5% .
The Swatch Group (SIX 🙂 was down 2.5% after reporting its first annual loss since the Swiss watchmaker’s inception almost 40 years ago when the pandemic weighed on demand in the luxury sector.
The world’s largest producer of spirits Diageo (LON 🙂 rose 3.7% after underlying net sales growth surprisingly increased in the first half, supported by strong demand in the US.
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