European stocks slid into the red on Tuesday as COVID-19 cases continue to weigh on markets, with Germany the latest country to take new lockdown measures to contain the spread of coronavirus.
Dow futures YM00,
German Chancellor Angela Merkel announced on Tuesday that the country would extend its national lockdown until April 18, with an even stricter shutdown in place from April 1 to April 5 over the Easter period. The Chancellor said that Germany needed to “break the exponential growth of the third wave,” as quoted in public broadcaster DW.
Coronavirus infections have been rising across Europe, and the move in Germany came as Austria cancelled its plans to reopen following Easter and Paris entered a month-long lockdown late last week.
CMC Markets analyst Michael Hewson said that the start of the week in European markets has been marked by concerns that “a third wave in Europe will delay an economic reopening, and push it into the middle of the summer.”
“This presents a problem for the travel sector and the potential for a speedy recovery, given the slow nature of the rollout due to supply, as well as hesitancy concerns,” Hewson added.
“When set against rising infection rates across Europe, it is likely to mean that even in the event of a successful rollout in the U.K., it’s highly unlikely that international travel will be able to return in any meaningful way while a large part of Europe remains behind the curve in inoculating its populations,” Hewson said.
Travel stocks led the charge into the red in Europe, with shares in airlines Air France-KLM AF,
The price of oil is also down, with benchmark Brent BRN00,