European Stocks Take a Hit After a Weekly Rally

The benchmark index of European stocks fell today, Friday, heading towards the weekly decline, as the increase in cases of coronavirus cases exacerbated fears of damage to the continent’s economy in the coming winter months.

The pan-European STOXX 600 index fell 0.3%, after jumping earlier in the week thanks to optimism about a vaccine for Covid-19. The index has gained about 12% in the past two weeks, as it is also supported by climate hopes of quieter global trade under US President-elect Joe Biden.

The French CAC 40 index lost 0.1%, as French Prime Minister Jean Castex said that there would be no immediate easing of a second general isolation measures to combat the spread of Covid-19, with the number of cases currently being hospitalized rising from the peak of the first wave.

The energy index led the decline, dropping 1.4%, while the banking and travel sectors fell by more than 0.8% in early trade.

French electricity group EDF fell 0.3% after the company reported falling revenues in Q3 as the Covid-19 pandemic negatively impacted electricity demand and put pressure on nuclear power production in France.