European markets gain some ground
Europe’s stock markets clawed back some ground on Tuesday, a day after rising second waves of the coronavirus epidemic caused the region’s biggest wipeout since June and drover investors back to government bonds.
Conditions were still choppy. South Korea and China’s bourses had pulled Asia down for a second day after the tech-heavy Nasdaq fell out of its recent stellar range, so it was a relief for traders to see Europe stabilise.
The pan-European STOXX 600 index made back 0.5% of the 3.2% it lost on Monday, helped by respective 1.5% and 0.6% gains for the tech and healthcare sectors. Travel and leisure stocks saw 0.3% falls to add to Monday’s 5.2% plunge, however, and as investors stayed close to safety, yields on Germany’s government bonds held near six-week lows and the dollar rose. Concerns surfaced in the currency market, with both the euro and Britain’s pound down around 0.3% against the dollar.
UK Prime Minister Boris Johnson will encourage Britons on Tuesday to go back to working from home, along with new curbs on pubs, bars and restaurants. This came as France saw its seven-day daily rolling case count rise above 10,000 for the first time over the weekend, Italy introduced more mandatory testing and Germany describe the situation as “worrying”.
Beyond the impact of the virus, Hong Kong shares of HSBC and Standard Chartered weakened a further 2%, after leaked reports showed they were among global lenders that have transferred more than $2 trillion in suspect funds over nearly two decades.
U.S. stocks have tumbled over the past three weeks as investors dumped heavyweight technology-related shares following a stunning rally that lifted the S&P 500 and the Nasdaq to new highs. JPMorgan and Bank of New York Mellon had fallen 3.1% and 4.0% respectively on Monday too.
Gold fell against the rising dollar, and traded at $1,908.76 per ounce, while in oil markets, Brent gained 0.4% to $41.65 and U.S. crude rose 0.5% to $39.5 per barrel.
This article was compiled by BOV Asset Management Limited, a member of the BOV Group. BOV Asset Management,TG Complex, Suite 2, Level 3, Brewery Str., Mriehel BKR 3000. Email: infoassetmanagement@bov.com Internet address: www.bovassetmanagement.com. BOV Asset Management is licensed by the MFSA.