European stocks ended in the red on Friday, clocking their first weekly decline in seven weeks on concerns over the economic damage from fresh Covid-19 lockdowns in the region that hammered cyclical sectors such as banks and automakers.
DUBLIN
The Iseq fell 0.25 per cent, mirroring the wider European decline triggered by fresh Covid restrictions imposed in Austria and the threat of potential lockdowns elsewhere in Europe.
The news weighed on travel stocks, with Ryanair dropping 2 per cent to €15.96. The airline also said it would delist from the London Stock Exchange, citing costs related to retaining an additional listing.
Banking stocks also dipped, with Bank of Ireland falling almost 4 per cent to €4.977 and AIB down 0.42 per cent to €2.151. Permanent TSB ended the session just under 2 per cent lower at €1.56.
Kerry Group was almost 2 per cent higher at €115.75, while Smurfit Kappa rose half a per cent to €46.26.
LONDON
London stocks were dragged down by commodity and travel shares on concerns around fresh Covid-19 curbs in Europe, while rising bets about rate hikes following strong economic data pushed the Ftse 100 index to its first weekly loss in four.
The blue-chip Ftse 100 closed 0.5 per cent lower, while the domestically focussed mid-cap Ftse 250 index ended 0.4 per cent down.
Oil majors BP and Shell slipped 2.9 per cent and 3.1 per cent, respectively, as crude prices sank amid a resurgent pandemic in Europe. Banks dropped 1.7 per cent.
Carriers Ryanair, British Airways-owner IAG, Wizz Air, EasyJet, Premier Inn owner Whitbread and caterer Compass Group slipped 2.3-5.2 per cent after Austria said it will reimpose a full Covid-19 lockdown.
Lockdown anxiety also overshadowed data showing British retail sales in October rose by more than expected, adding to recent signs that a slowdown in the economy might have abated slightly.
Retailers WH Smith and Ocado Group rose 1.2 per cent and 6.8 per cent, respectively.
Kingfisher tumbled 4.4 per cent after the home improvement retailer reported a 2.4 per cent fall in like-for-like sales in the three months to October 31st.
EUROPE
The pan-European Stoxx 600 index fell 0.3 per cent after hovering near record highs earlier in the session. The index ended the week 0.1 per cent lower.
It lost ground after news that Austria would become the first country in western Europe to reimpose a full Covid-19 lockdown this autumn to tackle a new wave of infections.
Germany's health minister, Jens Spahn, said the coronavirus situation in the country was so grave that a lockdown, including for people who have been vaccinated, could not be ruled out.
Frankfurt shares fell 0.4 per cent, while sectors more exposed to economic cycles such as banks, automakers and travel and leisure fell 1.5-2.2 per cent. South European markets, including those in Spain and Italy, fell about 1.5 per cent each.
European Central Bank president Christine Lagarde said inflation in the euro zone would fade so the ECB should not tighten policy as it could choke off the recovery, and hinted at continued bond purchases next year.
French luxury group Hermès gained 5.2 per cent, after jumping more than 6 per cent in the previous session, on market talks that it may be added to the Eurostoxx 50 index during a December review.
NEW YORK
Wall Street opened the day mixed, with the tech-heavy Nasdaq posting a record open but the blue-chip Dow dipping on fears the economic recovery could stall.
The Dow Jones Industrial Average fell 0.7 per cent, the S&P 500 lost 0.08 per cent and the Nasdaq Composite added 0.42 per cent. The MSCI world equity index, which tracks shares in 45 nations, fell 0.16 per cent.
The US House voted on Friday morning to pass a $1.75 trillion social spending Bill, which if made law would enact several of president Joe Biden’s top priorities, including new funds to address climate change. The Bill narrowly passed with only Democratic support, and its fate is unclear in the US Senate, where moderate lawmakers have raised concerns about its size and some of its programmes. The “Build Back Better” Bill aims to invest millions to expand education, lower healthcare costs and tackle climate change.
