(Reuters) – European stocks were set to close last week on a cautious note as tighter locks were expected in Germany and France as well as new COVID-19 restrictions in China cutting into hopes of a global economic recovery.
The pan-European STOXX 600 index fell 0.5% before 0804 GMT, ready for the weekend slightly lower.
German Chancellor Angela Merkel calls for “swift action” after the country saw the highest number of coronavirus deaths, while the French government said it would strengthen its border controls from Monday and put more curfews earlier from Saturday to prevent transmission.
The German DAX was down 0.5% and the French CAC 40 fell 0.6%. The UK FTSE 100 also fell 0.6% despite data showing that the British economy recorded a smaller-than-expected contraction in November.
U.S. President Joe Biden outlined a $ 1.9 trillion stimulus package proposal on Thursday, but failed to stimulate markets that were expecting the news.
In company news, German business software group SAP rose 0.9% after releasing initial annual results that came at the top end of the lead, but predicted a decline in operating profit in 2021 .
Siemens Energy AG fell 5.3% after General Electric Co accused a subsidiary of the power circulation company of using stolen trade secrets to bid for for-profit contracts.
Reporting by Amal S in Bengaluru; Edited by Saumyadeb Chakrabarty