European Stocks Fell on Fears of Lockdown

European stocks are heading to end the week with a cautious performance, as the prospect of tighter lockdown measures in Germany and France, as well as new restrictions to combat COVID-19 in China, dampen optimism about the global economic recovery.

The pan-European STOXX 600 index fell 0.5%, heading to close the week slightly lower.

German Chancellor Angela Merkel wants a “very fast action” after the country witnessed a record number of deaths from the Coronavirus, while the French government said it would strengthen border controls from Monday and impose a lockdown from Saturday to curb the spread of the virus.

The German DAX index fell 0.5% and the French CAC 40 index fell 0.6%. The FTSE 100 index fell 0.6% despite data showing that Britain’s economy contracted less than expected in November.

German business applications group SAP rose 0.9% after it announced preliminary annual results that came above the upper limit of expectations, but expected a decline in operating profits in 2021.

Siemens Energy fell 5.3% after General Electric accused a unit of the Electricity Distribution Corporation of using stolen trade secrets to tamper with bids for lucrative contracts.