Brexit Is No Match for the Pandemic’s Grip Over European Markets
- Virus worry beats Brexit in BofAML’s October client survey
- Investors brace for Europe stock volatility, euro weakness
A waiter carries chairs from an outdoor dining section as a curfew comes into effect in Paris on Oct. 17.
Photographer: Nathan Laine/BloombergThis article is for subscribers only.
European investors started the past week preparing for a Brexit showdown. They ended up getting blindsided by a fresh wave of virus restrictions, in a reminder of the pandemic’s power to thrash markets.
The announcements of Paris curfews and London curbs on activity on Thursday was what ultimately drove the Stoxx 600 to its first weekly loss in three and sent the euro to its lowest level so far this month. Meanwhile, the fallout from U.K. Prime Minister Boris Johnson’s self-imposed Oct. 15 deadline for a trade agreement with the European Union was blunted as both sides left room for further talks.