Marcus Ashworth, Columnist

Covid Isn't the Only Big Fear for Investors

French and German lockdowns have spooked the markets, but a de-risking of portfolios ahead of Tuesday’s U.S. vote is also a factor.

October 29, 2020 at 10:32 AM UTC

By Marcus Ashworth

Marcus Ashworth is a Bloomberg Opinion columnist covering European markets. Previously, he was chief markets strategist for Haitong Securities in London.

A clear winner?
Photographer: Pool/Getty Images North America

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European shares have been pounded in recent days because of the tightening of lockdown restrictions in places such as France and Germany. The latter has suffered especially badly in the markets. The last eight trading sessions have wiped more than 10% off German equities.

Understandably, investors are banking profits after a stellar run for the Dax index. It has been the best performer in Europe this year — up more than 50% since the March lows of the first Covid wave — driven by a resumption of exports to a resurgent China.