LONDON – Europe’s major stock markets rebounded in opening deals today from the previous day’s sharp sell-off sparked by tightening coronavirus lockdown measures in the region.
In initial trade, London’s benchmark FTSE 100 index of leading blue-chip companies was up 1.3% to 5,907.87 points.
In the eurozone, Frankfurt’s DAX 30 index added 0.6% to 12,783.73 points, and the Paris CAC 40 gained 1.5% to 4,907.35.
Global equities fell yesterday, with investor sentiment hammered by fears that tighter Covid-19 restrictions could derail the tentative economic recovery.
“Any gains are expected to be capped as sentiment remains fragile amid surging Covid cases and tighter lockdown restrictions,” said City Index analyst Fiona Cincotta today.
“The economic recovery from the initial Covid hit was already starting to stall. A further tightening of restrictions, investors fear, will derail a very fragile recovery.
“The hospitality sector, which is already on its knees, will struggle to survive another lockdown blow, and airlines are facing a very long, difficult winter.”
Traders are also keeping tabs on developments in Washington as lawmakers struggle to reach an agreement on a new stimulus for the beleaguered US economy, with a disappointing jobs report highlighting the need for action.
Asian equities were mixed today, with gainers supported by bargain-buying after the previous day’s sharp losses. – AFP, October 16, 2020
