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* French stocks sink 3.4%
* Macron set to give a televised address later in the day
* Automakers lead losses
* Rolls-Royce surges 12.5%; Delivery Hero, Hexagon up on
Oct 28 (Reuters) - German shares suffered their weakest day
since early June on Wednesday as the government agreed on an
emergency lockdown to combat surging COVID-19 cases, with other
European markets following suit on fears of more curbs around
The German DAX sank as much as 5% before cutting
some losses to close down 4.2% at its lowest in five months. The
precise measures were still subject to negotiation, with sources
saying the government had agreed to shut bars and restaurants
from Nov. 2.
The pan-European STOXX 600 index fell 3% in its
sharpest one-day drop in five weeks. France's main index
dropped 3.4% ahead of a televised address by President Emmanuel
Macron at 8:00 pm (1900 GMT) when he is expected to issue
"News of renewed lockdown measures... will add further to
growth concerns in the region, at a time when mobility
indicators have already started to fall and survey indicators
moderate," said Mohammed Kazmi, portfolio manager for UBP's
Absolute Return Fixed Income team.
"This will likely drive European Central Bank President
(Christine) Lagarde to remain dovish in her comments in the
press conference tomorrow, laying out the path for more easing
to come down the line."
Lagarde is due to speak at 1230 GMT on Thursday.
Ahead of that, the European Commission proposed new tax and
trade measures on Wednesday to fight the pandemic around the EU,
while sources said Germany aims to increase its debt plans next
year to finance new coronavirus aid measures.
All sectors in Europe were firmly in the red, with the
economically sensitive autos sector leading losses, down
U.S. stocks also tripped with surging cases there weighing
on sentiment and no stimulus package in sight just a week ahead
of the U.S. presidential election.
The downbeat mood overshadowed a batch of upbeat quarterly
results from European companies, with Deutsche Bank AG
and retailer Carrefour down despite upbeat
German online takeaway food company Delivery Hero
and industrial technology group Hexagon, however,
were among the rare gainers after robust earnings reports.
Aero-engine maker Rolls-Royce, meanwhile, soared
12.5% a day after shareholders approved a 2 billion pound ($2.61
billion) rights issue to bolster its finances.
(Reporting by Sruthi Shankar in Bengaluru; Editing by Sriraj
Kalluvila and Hugh Lawson)