European stocks weakened Thursday, as worries over the impact of rise in coronavirus cases on economic growth took the shine off the optimism over progress on a potential vaccine.
The German DAX DAX, -0.86%, French CAC 40 PX1, -0.90% and U.K. FTSE 100 UKX, -0.72% each registered moderate losses. The U.S. coronavirus situation is worsening, with the country setting another record for confirmed cases on Wednesday. Christophe Barraud, chief economist and strategist at Market Securities in Paris and a multiple winner of MarketWatch’s forecasting contest, pointed out that small-business data that’s available data is showing a discrepancy in U.S. activity between northern states in cooler climates and southern states in warmer climates.
After lockdowns across Europe, the case growth on the Continent has dropped but is still elevated, according to data from the European Centre for Disease Prevention and Control. Data from the U.K. showed that GDP recovered by a slightly below-forecast 15.5% in the third quarter, and by 1.1% in September. Samuel Tombs, chief U.K. economist at Pantheon Macroeconomics, said GDP probably was no higher in October than in September and will plummet in November due to the new lockdowns.