European stocks slid on Wednesday, with concerns over new coronavirus curbs offsetting hopes of a US stimulus deal this week.
Several indices in Asia rose overnight and Wall Street opened higher, amid hopes of a breakthrough in talks over a stimulus package in the US.
House of Representatives Speaker Nancy Pelosi said after talks with Treasury secretary Steven Mnuchin late on Tuesday she hoped an agreement could be reached by the end of this week.
WATCH: Stimulus talks extended as Pelosi signals progress
The gains failed to lift European markets, however, with stocks opening near-flat but quickly falling. Britain’s FTSE 100 (^FTSE) had shed 1.4% by mid-afternoon as a rising pound on Brexit developments hurt export-focused stocks, and new lockdown curbs were announced in Greater Manchester and South Yorkshire.
Germany’s DAX (^GDAXI) lost 1%, and France’s CAC 40 (^FCHI) lost 1.1%. Several European countries are weighing up or imposing further restrictions, which would likely hobble economies further. The Spanish government is considering tighter rules in badly affected areas like Madrid.
WATCH: European markets slide on coronavirus restrictions