New lockdowns announced in Germany and France

German government announced EU largest economy would enter a partial lockdown from November 2nd, while French President Macron declared a second national lockdown as a massive second wave of coronavirus infections threatens to overwhelm Europe before the winter. Governments fear that surging number of cases will paralyze the functioning of the health services after local restrictions failed to contain the spread of the pandemic. Pubs, restaurants and non-essential services will be closed in both countries for at least one-month, however schools will stay open. In France, citizens will be required to stay in their homes except to buy essential goods, seek medical attention, or exercise for up to one hour a day. They will be allowed to go to work if their employer decides they cannot work from home. In Germany private gatherings will be limited to 10 people from a maximum of two households. Professional sports events will be allowed to be held only without spectators. To mitigate the negative impact of the lockdown on the economy, Germany will set aside up to 10 billion euros to partly reimburse companies for lost sales.

European stock markets closed at their lowest levels since late May on Wednesday. Today major European indices erased early gains and are trading lower. FRA40 broke below the support at 4580 pts level. If the current sentiment prevails, the downward move could be extended to the 4320 pts handle. Source: xStation5

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