European Markets: European shares slide, however US inventory futures rebound as traders watch COVID-19 unfold

This photo, taken on November 12, 2020, shows chairs filled in a closed restaurant on Champs-Élysées street in Paris during a second national lockdown in France to contain the spread of the Covid-19 pandemic caused by the novel coronavirus.

stephane de sakutin / Agence France-Presse / Getty Images

European stocks fell on Friday, but US stock futures indicated a rebound from a losing session as investors worried about rising COVID-19 cases and a lack of immediate stimulus to US canine sentiment.

The Stoxx Europe 600 Index
slipped 0.1% but was still poised for nearly 5% gain for the week. The German DAX 30
and French CAC 40 index
+ 0.12%
fell 0.1% each time during the FTSE 100
fell by 0.5%.

US stock futures
+ 0.52%

+ 0.60%
indicated a recovery led by technology stocks
+ 0.62%,
after Thursday's meeting at the Dow
The S&P 500 lost over 300 points
fall 1% and the Nasdaq Composite
fall 0.65%.

Asian stocks fell across the board. President Donald Trump's administration signed an executive order banning Americans from investing in Chinese companies that are considered high-risk with ties to the country's military.

The week started with excitement following positive COVID-19 vaccine news from Pfizer
and partner BioNTEch
This led investors into so-called value trading – stocks that have been hit by the pandemic and would benefit from signs of a consolidating economy.

News of rising US hospital stays and record infection rates this week, as well as expectations that a stimulus package won't arrive in time to prevent further economic damage, returned to haunt investors until mid-week.

"Many investors only expect a sustained sector rotation from technology stocks as pandemic winners to spurned losers if the vaccine can not only be approved but also efficiently distributed in large numbers," said the analysts of CMC Markets in a statement to customers.

Investors also fear the US will be forced to issue new locks ahead of the holidays, as states like New York put curfews on from this weekend.

Europe has also grappled with climbing cases, although some governments appear unwilling to loosen lockdowns as hospitals are reaching their limits. The UK reported another record spike in infections on Thursday while French Prime Minister Jean Castex said it was "irresponsible" to relax a strict lockdown even if the reproductive number (R) fell below key level 1. An increase above this indicates that the pandemic is spreading.

In a report on Thursday, JP Morgan was optimistic that the lockdowns in Europe were working and that economies should be able to reopen in time for the December break.

Among the stocks that are moving for Friday are shares in Engie
+ 3.56%
rose nearly 5% after the French utility said its operating income fell for the first nine months of the year as the pandemic hit a billion euros ($ 1.18 billion). However, Engie stuck to the forecast for recurring net income and expenses for 2020.

With the business software group SAP, the technical names were stronger
+ 0.45%

plus 1% and chip equipment provider ASML Holding
+ 0.89%

1.6% increase.

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