European Stock Markets Retreat On Virus Shocks

European equities retreated on Friday, extending the decline in the previous session as the focus returned to the economic impact of the fresh virus shock.

Numerous economic data have highlighted the deterioration of the situation in Europe. Europe is heading into a double-bottom recession as the new Covid blockade has been hit hard.

Stock markets have fallen again after a mini-boost of stocks earlier in the week when US President Joe Biden took office.

The Asian index fell, partly due to concerns that Biden’s $ 1.9 trillion bailout plan could hit a hurdle.

The dollar was traded mixed while oil prices fell by more than 2%.

Sterling, who hit a three-year high against the dollar on Thursday with optimism about the UK’s vaccine rollout, then refused to head for the weekend in anticipation of a new recession.

“The optimism earlier this week has disappeared,” said Chris Boshan, chief market analyst at IG Trading Group.

“Weaker as the outlook for the global economy continues to dim … (data) measurements and the outlook for a UK travel ban have hit the leisure and travel sectors.”

Despite a wide positive lead from Wall Street on Thursday, losses in Europe and Asia occurred. The Dow fell slightly, but the Nasdaq set another record with the S & P 500.

The rise was helped by a series of bright US economic readings.

But the European data released on Friday was far less optimistic.

A new recession is almost certain, as the slowdown in eurozone business activity accelerated in January and the Covid-19 pandemic continues to hurt the economies of 19 countries.

The carefully monitored PMI index, edited by IHS Markit, is considered the earliest indicator of economic status, and the latest readings confirmed concerns that the viral crisis a year ago was still strong.

Chris Williamson, Chief Business Economist at IHS Markit, said: “The tightening of Covid-19 regulations in January has hit companies even harder, and the recession at the bottom of the eurozone economy seems more and more inevitable.

The UK outlook was the same after it was shown that private sector activity had shrunk this month.

“The plunge in business activity in January has caused the locked-down UK economy to shrink sharply in the first quarter of 2021, which means the recession has bottomed out,” Williamson said. “There is.”

Anthony Fauci, a top infectious disease adviser, said he was optimistic about Joe Biden’s goal of 100 million doses within the first 100 days.

London-FTSE 100: down 0.8% at 6,664.93 points

Frankfurt-DAX30: down 0.9% at 13,788.89

Paris-CAC 40: down 1.2% at 5,525.60

EURO STOXX 50: down 1.1% at 3,580.40

Tokyo-Nikkei 225: 28,631.45, down 0.4% (closing price)

Hang Seng Index: 1.6% down 29,447.85 (closing price)

Shanghai-Comprehensive: 3,606.75 down 0.4% (closing price)

New York-Dow: 31,176.01 Flat (Closed)

Euro / dollar: $ 1.2169 up from $ 1.2169 at 2150 GMT

Dollar / yen: Up 103.68 yen from 103.50 yen

Pound / dollar: down from $ 1.3735 to $ 1.3667

Euro / Pound: Rise from 88.59 Pence to 89.09 Pence

West Texas Intermediate: $ 51.84 / barrel down 2.4%

Brent North Sea Crude: $ 54.82 / barrel down 2.3%

European Stock Markets Retreat On Virus Shocks Source link European Stock Markets Retreat On Virus Shocks

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