European stocks claw back some of the territory lost
Equities in the region slumped the most since June 11th on Monday on Covid-19 fears
Traders work on the floor of the New York Stock Exchange (NYSE) in New York City.
European stocks rose on Tuesday, clawing back some of the territory lost in Monday’s slump as market participants watched for clues about the severity of the region’s response to the resurgent pandemic.
The Stoxx Europe 600 Index rose 0.5 per cent as of 8.20am in London, with tech stocks, banks and retailers leading gains.
With volumes returning from a summer lull, equities in the region slumped the most since June 11th on Monday amid mounting signs that Europe’s coronavirus outbreak is once again reaching a scale that would require disruptive lockdown measures.
Stocks that stand to gain from a slowdown in public life, such as meal-kit maker HelloFresh SE and video game makers Ubisoft Entertainment SA and CD Projekt SA bucked the trend on Monday and continued rising at Tuesday’s open.
Monday’s sell-off looked as if markets were bracing for a return to spring’s tribulations, even though the measures announced to date – such as closing U.K. pubs by 10pm – look less severe, CMC Markets analyst David Madden told Bloomberg by phone.
Nevertheless, doubters of a V-shaped recovery have been vindicated as Europe looks set to go in and out of pandemic-related restrictions “for six months, 12 months, two years, who knows,” Madden said.
Embattled German lease financing firm Grenke AG and Dubai-based payments provider Network International Holdings Plc gained the most among members of the benchmark. UK specialist insurer Beazley fell the most, after doubling its forecast for the cost of Covid-19 claims. – Bloomberg