European markets in red zone1 min read
European markets traded in negative territory on Friday concern over new lockdown measures, and a reemergence of Covid-19 cases in China, dented the positive sentiment generated by U.S. President-elect Joe Biden’s $1.9 trillion stimulus plan.
The pan-European Stoxx 600 fell 0.8% by early afternoon, with basic resources shedding 2.1% to lead losses as all sectors traded in negative territory except health care, which gained 0.6%.
At the top of the European blue chip index, British IT firm AVEVA Group climbed 5.7% after a positive trading update.
Italy has been plunged into political turmoil once again as former Prime Minister Matteo Renzi decided to pull his support for the current coalition government on Wednesday. Current Prime Minister Giuseppe Conte resisted calls to resign, despite being stripped of the coalition’s parliamentary majority.
U.S. stock futures also pointed lower in pre-market trade on Friday as Wall Street geared up for the start of the U.S. corporate earnings season.