European markets in the red amid new restrictions

European markets have all started in the red on Tuesday morning amid new Coronavirus restrictions and lack of a US stimulus deal.

The FTSE 100 fell 0.3% to 5,867 points. France’s CAC and Germany’s Dax were both 0.5% lower on Tuesday.

Markets are slipping as Coronavirus cases are on the rise and there is a tightening of restrictions. 

Connor Campbell from Spreadex commented on this morning’s fall on the blue-chip index: “Covid-19 crisis is intensifying – and remember, we aren’t in the acute months of winter yet either – with the ominous shuttering sounds of more restrictions in Europe joined by rising positivity rates in several prominent US states.

“Yesterday saw the markets swing from green to red, with the Dow staying there by the end of the session as it fell more than 400 points.

“And though they weren’t as bad this morning, the European indices nevertheless struggled to find a reason not to slump even lower,” he added.

In the US, investors remain concerned whether US lawmakers can reach a stimulus deal.

Speaker of the House Nancy Pelosi’s spokesperson said on Monday that the two sides “continued to narrow their differences”, however, they only have until 3 November to reach a deal before the presidential election. 

In Asia, China’s SSE composite index saw gains of 0.5% overnight. Japan’s Nikkei 225 closed 0.4% lower.