Paris (AFP)

Global stock markets were depressed Thursday by the tightening of restrictions against Covid-19 and the lack of progress in discussions on a US stimulus plan.

In the wake of the gloom from which the Asian markets have suffered, the Paris Stock Exchange fell by 2.11%, that of Frankfurt by 2.49% and the FTSE 100 in London by 1.73%.

At the same time, Wall Street fell more moderately: the Dow Jones by -0.58%), the Nasdaq by -1.20% and the extended S&P 500 index by -0.72%.

"The European markets have ended intensely in the red due to the tightening of the restrictions" taken to slow down the health crisis, observes David Madden, analyst for CMC Markets.

This risk aversion had the effect of accentuating the decline in yields on government securities in the euro zone: the Bund, a ten-year German bond that is the benchmark on the market, fell to -0.61% at the closing of the secondary market where the debt already issued is exchanged.

The French 10-year rate fell to -0.33% against -0.30% the day before.

The increase in Covid-19 cases has prompted several European governments to introduce new restrictive measures locally, such as in Germany, France and the United Kingdom.

Therefore, "investors are in risk aversion mode because they fear that economic activity will suffer," said Madden.

As the US elections approach, more bad news is piling up, whether it is the lack of progress in the US Congress to reach agreement on a new fiscal stimulus and in post-Brexit negotiations.

Contrary to the pessimistic comments of Steven Mnuchin, the Secretary of the Treasury, on the ability to reach an agreement before the presidential election on November 3, US President Donald Trump again said he was ready on Thursday to take up the offer from his administration to unblock negotiations in Congress.

This new boost to American businesses and households is necessary especially since Thursday, several indicators across the Atlantic were rather disappointing overall.

Weekly jobless claims in the United States started to rise again last week, reaching their highest level since August.

Manufacturing activity also developed in contrasting fashion in October, recording moderate growth in the New York area, but a sharp rebound around Philadelphia.

- "Reconfinement?"

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If the idea of ​​a complete reconfinement is not on the agenda, investors however fear the next step, "if ever the situation does not improve", tells AFP Andrea Tuéni , analyst at Saxo Bank.

In this context, the results of companies for the third quarter will be scrutinized in the coming days, the traditional publication season has just opened.

For now, two US banks, Bank of America and Wells Fargo, presented disappointing figures, and fell sharply on Wall Street on Wednesday.

On the Brexit side, EU leaders, meeting at a summit in Brussels, called on Thursday in London for the "necessary gestures" to allow an agreement on their post-Brexit relationship in the face of pressure from British Prime Minister Boris Johnson, which is looming the threat of a halt in negotiations.

THE TRAVEL INDUSTRY BALLS DOWN

Exposed to the consequences of measures restricting individual freedom, the travel sector has paid a heavy price, like Accor (-5.32% to 22.76 euros) and Air France-KLM (-1, 90% to 2.94 euros).

The Irish company Ryanair said Thursday that it would again reduce its flight capacities in the face of the Covid-19 pandemic and the fall in traffic, and reduce them this winter to 40% of their level of last year versus 60% initially planned for the period.

The action lost 4.30% to 11.79 euros on the Dublin Stock Exchange.

It dragged down the rest of the sector, in particular IAG (-2.54% to 95.76 pence), and Easyjet (-3.28% to 480.50 pence), undermined by the prospect of further cuts in activity and traffic in a sector already going through a serious crisis.

AUTOMOTIVE LACK OF FUEL

Very cyclical, values ​​related to the automotive industry have collapsed.

In Frankfurt, BMW unscrewed -2.61% to 62.41 euros, Daimler (-2.14% to 47.24 euros) and Volkswagen (-2.18% to 136.14 euros).

In France, Renault lost 1.97% to 22.69 euros and PSA 2.62% to 15.21 euros.

© 2020 AFP