European shares hit low levels on global sell-off
European equities recorded a three-month low on Thursday. This could be attributed to a sell-off seen in global risk assets as the absence of a new U.S. stimulus package and the second wave of coronavirus infections dragged investors’ optimism over the global economic recovery.
The pan-European STOXX 600 index recorded its worst session since June as it plunged 1.0%. Meanwhile, bourses in Frankfurt, London, and Paris dropped between 0.6% and 1.0%.
Growth-sensitive sectors weighed heavily on markets as the travel and the oil and gas sectors both plunged about 2%. Tech-related stocks recorded a 2% decline.
On Wall Street, indexes made large declines overnight. This followed after technology-related stocks plunged as the U.S. Federal Reserve called for more government support while emphasizing the need for monetary easing.