Shaken by the resurgence of the Covid-19 pandemic across Europe and the potential economic consequences of movement restrictions, European stock markets are unraveling on Monday.

In Paris, the CAC 40 index fell 3.74%, in Frankfurt, the Dax plunged 4.37% and in London, the FTSE 100 by 3.38%. 

European stock markets on Monday returned to their dark periods of spring, shaken by the resurgence of the Covid-19 pandemic across Europe and the potential economic consequences of movement restrictions.

In Paris, the CAC 40 index fell 3.74%, its worst session since June 11.

In Frankfurt, the Dax plunged 4.37% and in London, the FTSE 100 by 3.38%.


"The sanitary woes are shaking the ambient mood," said David Madden, market analyst for CMC Markets UK.

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Coronavirus: follow the evolution of the situation Monday, September 21

Covid-19 fears and US-China tensions

By the time the United States will pass the 200,000 death mark, Madrid residents are resuming strict travel controls on Monday and the United Kingdom, the most bereaved country in Europe, fears a new "takeoff" of the pandemic.

"There are both the fears linked to Covid-19, the contagion of the American markets on Europe via technological stocks, and the tensions between the United States and China", summarizes Alexandre Baradez, analyst for IG France, to explain the decline in indices.

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Very sensitive to the mood of Wall Street, the Parisian place deepened its losses at the opening of the New York Stock Exchange, itself weakened by the fall of its technological stars on Monday.

At mid-session, the three main New York indices lost between 1.2 and 2.7%.

After several months of relative optimism against a backdrop of deconfinement and economic recovery, financial centers around the world are struggling to find the energy to keep moving forward.

"There is the feeling that we have absorbed part of the economic rebound, but the slowest part remains to be done", analyzes Alexandre Baradez for whom "everything that will be said about the virus now will have the same importance as monetary policy decisions ".

Money laundering charges

Also a source of stress in the markets on Monday, the fall in bank stocks across Europe after the revelation of a consortium of journalists who accuse these banking giants of having allowed dirty money laundering on a large scale.

Targeted by the investigation into its alleged lack of transparency vis-à-vis certain customers of its Swiss subsidiary SGPB, Societe Generale lost 7.66% to 11.66 euros.

Deutsche Bank finished down 8.76% to € 7.00 and ING tumbled 9.27% ​​to € 8.99 in Amsterdam.