FRANKFURT: European stocks closed sharply lower on Thursday as Wall Street tumbled after another record surge in US coronavirus cases that raised fears of fresh lockdowns.

London stocks were among the biggest casualties in Europe, sliding 1.7%, with energy firms BP and Royal Dutch Shell down about 4% as oil prices plunged on worries about fuel demand.

The main indexes in Paris, Milan and Madrid fell between 1.2% and 2%, while Frankfurt-listed shares closed flat as software giant SAP jumped 4.6% after confirming its full-year outlook.

After hovering in positive territory until afternoon trading, the broader European index lost ground and closed down 0.8% to hit a one-week low.

Technology stocks registered the only sector rise in Europe, up 0.9%, while banks and utilities fell nearly 2%.

Merck KGaA and Roche rose 1.7% and 0.7% respectively after Reuters reported the European Commission has struck deals with the drugmakers to secure supplies of experimental treatments for COVID-19.

National Grid slid 5.5% after British energy regulator Ofgem said energy network operators should invest 25 billion pounds from 2021 to 2026 to deliver emissions-free energy and proposed cutting returns the companies can make.

The United States reported more than 60,000 new COVID-19 infections on Wednesday, setting a single-day global record, while government data showed another 1.3 million Americans filed for jobless benefits.

"Risk appetite is struggling as the coronavirus spread is still not under control in most parts of the world and as geopolitical tensions between China and the West intensify," said Edward Moya, a senior market analyst at Oanda.

A US official told Reuters the Trump administration planned to finalise regulations that will bar the government from buying goods or services from any company that uses products from China's Huawei and others.

Comments

Comments are closed.