European Shares Fall Due to Higher Covid-19 Cases

European shares fell to a three-week low on Tuesday, November 23, after a resurgence of Covid-19 cases and concerns about interest rate hikes dampened sentiment ahead of flash readings on business activity in the eurozone.

The European STOXX600 index fell by 1% after Asian markets followed Wall Street’s lead in the decline due to the re-nomination of Federal Reserve Chairman Jerome Powell for a new term, boosting bets for a US interest rate hike in 2022.

Technology stocks fell 2.5% as the possibility that higher interest rates could affect the attractiveness of the rapidly growing technology sector.

Shares of tourism companies fell 0.9% after the United States issued a travel warning to Germany and Denmark due to the increase in Covid-19 cases, while shares of oil companies fell 0.3% as a result of the decline in crude oil prices, amid increasing expectations that the United States, Japan and India will release quantities of their reserves from Crude oil to lower prices.