European stocks slip as surge in pandemic cases cast glooms on rebound hopes

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European stocks slip as surge in pandemic cases cast glooms on rebound hopes

On Friday, a basket of European bourses had wrapped up the day sharply lower with London leading the losses in the region despite a robust opening sailed over the gains of Asian stocks, as an uptick in pandemic cases across the United States alongside other heavily populated nations had shelved recovery hopes of a majority of European investors, while a week-end sell-off wave which is usual in times of grave fiscal uncertainties had also played a pulsating role on Friday’s en masse rout.

In point of fact, a number of upbeat economic data including a rise in China’s industrial firms’ profits for the first time in six months alongside an unprecedented turnaround of eurozone PMI (Purchasing Managers’ Index) and a record gain in US non-farm payroll of 4.8 million jobs last month, had been adding a bullish wave throughout the week, but Friday’s faltering of the European bourses was largely goaded by a spike in pandemic cases in the United States alongside worries over renewed talks on added levies over EU-borne goods by the US President Donald Trump and his Administration.

Spike in pandemic cases rekindles worries over demand crunch

Citing statistics, on Friday’s European market round off, London’s FTSE 100 tottered 1.33 per cent to 6,157.30 and French CAC 40 had curbed out 0.84 per cent to 5,007.14, while Frankfurt’s DAX dwindled 0.64 per cent to wind up the day at 12,528.18.

Elsewhere in the Europe, Madrid’s benchmark IBEX 35 was hit with a whiplash of 1.27 per cent to 7,403.50, while Italy’s FTSE MIB took a header of 0.81 per cent to curtain off the day at 19.726.65.

Aside from that, the regional pan-European STOXX 600 lost ground in the later part of the day with miners, automakers and financials leading the losses. However, STOXX 600 reported a 2 per cent weekly gain despite a decline of 0.8 per cent on Friday’s low-volume trading due to a National Holiday in the United States.

Meanwhile, referring to market participants’ concerns over a large slump in equity prices ahead of an earnings’ season which would likely to be choppy despite trillions of euros in Government bailout packages, a head of FX strategist at UBS Global Wealth Management wrote in a client note, “The fear of another big(ger) drop in equity prices continues to haunt financial markets. The opportunity to engage in European assets also seems a bit limited.