It was a bearish week. A continued rise in new COVID-19 cases and low vaccination rates coupled with extended lockdown measures weighed.
European stocks were set to end the week on a cautious note as the prospect of tighter lockdowns in Germany and France as well as new COVID-19 restrictions in China cut into optimism about a global economic recovery. The pan-European STOXX 600 index fell 0.5% by 0804 GMT, set to end the week marginally lower. German Chancellor Angela Merkel wants "very fast action" after the country saw a record number of deaths from the coronavirus, while French government said it will strengthen its border controls from Monday and impose an earlier curfew from Saturday to curb the spread.
Economic data from the Eurozone and the U.S, corporate earnings, and U.S stimulus news will be key drivers. COVID-19 news updates will continue to influence, however.