EUROPE Stocks hit by China COVID risk

21 Nov 2022 , 05:30 PM

European stock markets were mostly lower on Monday, 21 November 2022, with shares of economically sensitive materials, energy and industrials companies led losses, as a record-high jump in COVID19 cases in China and uncertainty over the path of U.S. monetary policy dampened risk sentiments. At 11:50 GMT, the pan European Stoxx 600 index declined 0.2% to 432.54. Germanys DAX index dropped 0.5% to 14,355.15. Frances CAC 40 index shed 0.1% to 6,637.14. The U.K.s FTSE 100 index fell 0.02% to 7,383.76. Switzerlands Swiss Market index added 0.03% to 11,048.57. China is grappling with its worst outbreak in seven months, which had seen several cities placed under lockdown. Beijings most populous district urged residents to stay at home on Monday, while local authorities in the Baiyun District of the southern Chinese city of Guangzhou locked down the area for five days as COVID-19 cases continue to mount. Many businesses in the district were shut and schools shifted classes online. The Beijing government reported on Sunday that one person had died from the coronavirus, the first in mainland China in around six months amid rising infections. Cases rose to 26,824 nationwide on Monday from 24,215 a day earlier, according to government data. Hawkish signals from the Federal Reserve drove up fears of a potential U.S. recession, with members of the central bank indicating that it will not curb its rate hikes until inflation is much closer to its annual target range. The minutes of the Feds November meeting, due later this week, are expected to shed more light on the path of U.S. monetary policy. Back to home, Julius Baer edged higher as the bank said it was on track to reach its 2022 profitability targets despite challenging market conditions taking a big bite out of its assets under management. HelloFresh rose after Goldman Sachs started coverage on the German meal-kit maker with buy rating. Asia-Pacific stock markets were mostly lower on Monday, on worries about the impact of surging COVID-19 cases in China. Japans Nikkei225 index declined 45.02 points, or 0.16%, to 27,944.79. Australias S&P/ASX200 index was down 12.58 points, or 0.18%, to 7,139.25. Chinas Shanghai Composite Index declined 0.39%, or 12.20 points, to 3,085.04. Hong Kongs Hang Seng Index stumbled 336.63 points, or 1.87%, to 17,655.91. South Koreas Kospi rose 0.1%. South Koreas Kospi fell 1%, the Jakarta Composite Index fell 0.3% while the Kuala Lumpur Composite Index fell 0.1%. Powered by Capital Market – Live News