Europe open: Shares lower on SAP guidance cut, Covid lockdowns
European stocks opened lower on Monday on the back of a profit warning from software maker SAP and tighter Covid-19 restrictions.
The pan-European Stoxx 600 fell 1% with Germany’s DAX slumping 2.72% on the SAP news. France’s CAC 40 fell 1.2% and the UK’s FTSE 100 were also lower.
Dow Jones futures were down 271 points with the S&P 500 and Nasdaq also indicating a lower start.
Italy announced the closure of bars, restaurants, cinemas, pools and gyms as it tried to stymie a second coronavirus outbreak. Spain was set to introduce an 11pm curfew.
In the UK, investors were also keeping a close eye on Brexit talks. EU chief negotiator Michel Barnier has stayed in London in an effort to break the impasse.
SAP shares plunged by 20% after the company said cut its revenue forecast for the full year and said it expected a fresh wave of lockdowns to hurt demand through the first half of 2021.
Coca-Cola European Partners shares rose after offering AUD10.8bn for Coca-Cola Amatil.
Bayer shares were up as the company agreed to buy US biotech company Asklepios BioPharmaceutical for $4bn, bolstering its pharma division with experimental gene therapies before patents expire on some key drugs.