On Tuesday, a basket of European bourses had wrapped up the day in a downbeat tenure with financials alongside energy stocks leading the losses at the last session of a strong quarter, while the London Stock Exchange took a heavy header following reveal of the UK economy’s biggest plunge in 40 years over the first quarter of the year.
In point of fact, a stimulus-backed revival plan appears to have aided in the regional pan-European STOXX 600’s cause to report a rise of more than 12 per cent over the second quarter of the year, the index’s best quarter since the March of 2019, while a number of upbeat economic data including an upsurge in retail sales, a far-fetched gain in Markit IHS eurozone PMI to 47.3 last month and a relatively lower pandemic cases in the Europe had powered a majority of European stock indices to report their best quarterly percentage gain since March 2015 over the Q2, 2020.
European shares notch best quarter in years over hopes of economic recovery, mammothlike fiscal stimulus
Concomitantly, the Tuesday’s tottering in the European shares were mostly catalysed by the losses in the lenders and energy stocks as beforementioned, while STOXX 600 listed banking and energy stocks fell as much as 1.5 per cent.
Adding further strains, a worse-than-anticipated quarterly plunge in UK economy over Q1, 2020, had weighed on London-listed stocks. Citing statistics, on Tuesday’s European market closure, London’s FTSE 100 faltered 0.90 per cent to 6,169.74 and French CAC 40 had curbed out 0.19 per cent to 4,935.99, while the Frankfurt’s DAX gained 0.64 per cent to 12,310.93.
Elsewhere in the Europe, Madrid’s benchmark IBEX 35 had winded up the session down by 0.64 per cent to 7,231.40 after falling as much as 1.2 per cent on late-afternoon trading, while the Italy’s FTSE MIB soured 0.37 per cent to round off the day at 19,375.52.
Meanwhile, referring to Tuesday’s UK economic data that showed the UK economy had contracted by the most since 1979 over Q1, 2020, an investment director at AJ Bell, Russ Mould said following the European session closing bell, “The biggest quarterly drop in UK GDP in more than a generation helped contribute to a downbeat feel for the markets.
Combined with the warning from the World Health Organisation that the worst of the coronavirus pandemic was yet to come, it’s easy to see why investors would be feeling nervous. ”