Irish shares hit as investors see Covid restrictions in Germany increasingly likely
Shares in Irish Ferries-owner ICG fall 2.5%.
European shares fell as tough new restrictions before Christmas to counter the surge in Covid-19 cases appear more likely in Germany, investors said.
Shares in Frankfurt and Paris closed up to 1% lower on Tuesday.
In Ireland, AIB fell 2%, Dalata Hotel shed 3%, and Irish Ferries-owner ICG also closed lower, by 2.5%, amid heightened fears of new restrictions.
Josh Mahony, at online broker IG, said that strong survey evidence from purchasing managers across the continent had helped to offset the worst of investors' fears over what a further wave of Covid could do to the European economy despite "fears over increasingly likely Covid restrictions in Germany".
"While the imposition of restrictions in the Netherlands, Austria, and Belgium have brought a raft of protests, the rapid rise in German cases does spell trouble for consumer spending around the critical festive period," said Mr Mahony.
Austria's lockdown which came into force on Monday may cost €3bn, according to estimates.
In response to a jump in Covid cases, the Netherlands reimposed a social distance of 1.5m, Slovakia mulled imposing a stricter lockdown, and the Finnish capital Helsinki is set to recommend a return to home working.
Here, Finance Minister Paschal Donohoe told reporters the Government plans to keep the employment subsidy and other business and jobs at their current payment levels.
Meanwhile, the price of wholesale European gas as traded in the Netherlands jumped back above €90 per megawatt hour on Tuesday, up from €86 per megawatt the previous day.
Gas prices rose after the US imposed its latest sanctions aimed at Russia’s Nord Stream 2 pipeline, a move the Kremlin says is “illegal”.
European coal prices have also risen as power plants across Europe use more coal to generate electricity.
