Resurgence in coronavirus cases pushes European stocks lower

European stocks sank on Monday, as Italy and Spain imposed fresh restrictions to control a resurgence in coronavirus cases, while shares in German heavyweight SAP slumped 20% after it cut its 2020 outlook.

The pan-European STOXX 600 index tumbled 1.2%, with risk appetite globally sapped by worries over U.S. stimulus progress and presidential election. The German DAX dropped 2.7% to hit a three-month low after software company SAP abandoned medium-term profitability targets and cautioned that its business would take longer than expected to recover from the pandemic. The wider tech index slumped 5.8%.

Europe became the second region after Latin America to surpass 250,000 deaths on Saturday, according to a Reuters tally, as many Southern European countries reported their highest number of COVID-19 cases in a single day. Italy on Sunday ordered bars and restaurants to close by 6 p.m. and shut public gyms, cinemas, while

Spanish Prime Minister Pedro Sanchez announced a new state of emergency. Milan’s blue-chip index dropped 1.5%, even as ratings agency Standard and Poor’s upgraded Italy’s sovereign outlook to stable from negative.

MSCI’s broadest index of AsiaPacific shares outside Japan inched up 0.1%, still short of its recent 31-month peak. Japan’s Nikkei dithered either side of steady, and South Korea’s main index lost 0.3%.

Chinese blue chips shed 0.5% as the country’s leaders met to chart the nation’s economic course for 2021-2025, balancing growth with reforms amid an uncertain global outlook and deepening tensions with the United States.

In commodity markets, gold edged down 0.1% to $1,898 an ounce. Oil prices fell further in anticipation of a surge in Libyan crude supply and demand concerns caused by surging coronavirus cases in the United States and Europe. Brent crude futures lost 73 cents to $41.04 a barrel, while U.S. crude also fell 73 cents to $39.12.

This article was compiled by BOV Asset Management Limited, a member of the BOV Group. BOV Asset Management,TG Complex, Suite 2, Level 3, Brewery Str., Mriehel BKR 3000. Email: infoassetmanagement@bov.com Internet address: www.bovassetmanagement.com. BOV Asset Management is licensed by the MFSA.