Europe loses confidence in coronavirus rebound as indices sink back into the red

Europe loses confidence in coronavirus rebound as indices sink back into the red

Written by: Connor Campbell

With the whiff of a springy rotting feline seeping into trading rooms, the European markets completely erased their gains on Tuesday.

 

At the very start of the day investors seemed unsure whether to buy into the rebound, the European indices struggling to settle into a groove.

 

That did come, however, and with hopes that Trump is preparing a major economic relief strategy – if it can get through Congress – the likes of the FTSE and DAX were soon up close to 3% apiece.

 

Now the UK index finds itself nearing 5950 after slipping 0.6%, with its German counterpart shedding another 1.3%, forcing it the wrong side of 10550.

 

Though the Dow Jones managed to cling onto some growth, its 200 points rise leaves it a staggering 1000 points shy of the session’s 25000-tickling highs.

 

There wasn’t necessarily any one major headline to spark this downturn. The country-wide lockdown in Italy was a troubling backdrop to the day’s gains from the off, while news of a jump in UK cases only served to hurt sentiment. But investors simply seemed to lose confidence in the rebound, lacking significant justification for a comeback as great as that seen at lunchtime. Now the day may be seen as a win if the European and US indices simply avoided seriously extending Monday’s disastrous losses.

 

Source: SpreadEx