LONDON — European markets were lower Monday morning as surging coronavirus cases throughout the continent weighed on sentiment, while SAP’s plunge led a sharp decline for tech stocks.
The pan-European Stoxx 600 fell 0.8% in early trade, with the technology sector plunging 4.8% after Germany’s SAP abandoned its medium-term profitability targets and warned that its business would take longer than expected to recover from the damage of the coronavirus pandemic. The company’s stock plunged more than 16%.
The resurgence of the coronavirus in Europe has continued apace in recent days, with France reporting a record daily rise in new infections on Sunday, Italy ordering bars to close early and shutting public gyms and Spain issuing a nationwide curfew to stem a worsening outbreak.
The U.S. also reported a record number of daily Covid-19 infections on Friday with more than 83,000, surpassing its mid-July peaks despite President Donald Trump’s insistence that the country is “rounding the turn” on the virus.
Asian markets were mixed overnight as investors monitored the deteriorating situation in the West, while U.S. stock futures are pointing to a lower open on Wall Street later in the day.
Meanwhile, hopes of a new coronavirus aid bill being signed in Washington ahead of the Nov. 3 election are diminishing by the day. House Speaker Nancy Pelosi told CNN over the weekend that a deal is still possible this week and that she had sent Treasury Secretary Steven Mnuchin a list of concerns over the weekend and was hoping for an answer on Monday.
On the data front, Germany’s Ifo Institute publishes its business climate and expectations survey for October at 9 a.m. London time.