European stocks traded lower Monday on a combination of worries, including a profit warning from business software giant SAP, new restrictions on activity in response to COVID-19 and difficulties in U.S. stimulus talks.
Down 1.4% last week, the Stoxx Europe 600
Further restrictions on activity were introduced in Europe to fight a second wave of the coronavirus. Italy from Monday will close bars and restaurants by 6 p.m., and shut cinemas and gyms altogether, while Spain is introducing an 11 p.m. curfew. World Health Organization Director-General Tedros Adhanom Ghebreyesus said northern hemisphere countries are facing a “dangerous moment.”
House Speaker Nancy Pelosi and White House chief of staff Mark Meadows on Sunday accused each other of moving the goalposts in stimulus talks, in separate interviews they gave to CNN.
Investors in Europe also are positioning ahead of talks between the European Union and the U.K. on a post-Brexit trade deal, this week’s European Central Bank meeting and next week’s U.S. elections.
Also of note, the dollar
broke through 8 Turkish lira, another indicator of the economic struggles Turkey is facing.
dropped 20% — its worst single-day performance since losing 23% on Oct. 23, 1996 — as the German business software giant revised down its 2020 outlook as it said the impact of COVID-19 has been to push back customer investments between one and two years. SAP said its 2023 operating margin would be up to 5 percentage points lower than it previously targeted.
Coca-Cola European Partners
rose 1% after offering A$10.8 billion, or €5.2 billion, for Coca-Cola Amatil
one of the largest bottlers and distributors of ready-to-drink non-alcoholic and alcoholic beverages and coffee in the Asia Pacific region. The Coca-Cola Co.
tentatively agreed to sell its 31% stake. Coca-Cola European Bottlers separately said third-quarter adjusted revenue fell 3%.
slipped 1% after it said it would pay up to $4 billion for Asklepios BioPharmaceutical, a U.S.-headquartered biopharmaceutical company specializing in gene therapies.