Europe: Stocks hit mid-June low on report France mulling national lockdown

[BENGALURU] European stocks hit their lowest level since mid-June on Wednesday following a report France was mulling a month-long national lockdown to combat a surge in coronavirus infections.

The pan-European Stoxx 600 index fell 1.6 per cent by 8.08am GMT, while Germany's DAX tumbled 2.2 per cent, UK's FTSE 100 dropped 1.5 per cent and France's CAC 40 plunged 2.5 per cent.

The French government has been exploring a new, national lockdown from midnight on Thursday, BFM TV reported, albeit a slightly more flexible one than the two-month shutdown that began in mid-March.

President Emmanuel Macron will give a televised address later in the evening, his office said.

Meanwhile, German Chancellor Angela Merkel wants to close all restaurants and bars from Nov 4 according to a draft resolution seen by Reuters, while the Telegraph newspaper reported British Prime Minister Boris Johnson is under pressure for a new lockdown.

Economically sensitive sectors such as automakers, banks and insurers led early declines, falling between 2.5 per cent and 3 per cent.

Deutsche Bank fell 3.6 per cent, even as it reported a surprise swing into quarterly net profit and upgraded the revenue outlook for its investment bank.

REUTERS