Irish shares hit as fears of new German Covid-19 lockdown haunt markets

The darkening outlook is a reality check for the market, which had largely put behind the risk of Covid-19

The street leading to the Brandenburg Gate in Berlin, Germany. File Picture: Christophe Gateau/DPA via AP

The prospect of widespread Covid-19 lockdowns is casting a pall over European stock markets again - with shares in the Irish banks, Ryanair, and Dalata Hotel Group falling on fears of a new round of health restrictions to travel, tourism, and hospitality.

Traders piled into haven assets and pushed back their expectations for interest-rate hikes after Austria announced a nationwide lockdown starting on Monday. Germany’s health minister refused to rule out closures in the country, weighing on investor expectations for a post-pandemic recovery.