European, Asian stocks fall following new restrictions in Europe
- 24 Mar 2021
Gulf Today Report
European stocks dipped on Wednesday on worries surrounding new restrictions in Europe overshadowing economic growth for the eurozone in March.
The pan-European STOXX 600 index was down 0.2%, after declining by 0.7% in early morning trading.
Eurozone stocks also cut losses after IHS Markit's flash composite PMI bounced above the 50 marks, separating growth from contraction to 52.5 this month compared to February's 48.8.
The data was somewhat comforting for investors, however, the third wave of coronavirus and new restrictions in Europe are likely to affect April’s numbers.
"COVID management is a bumpy road. We nevertheless think that recovery will be quite strong in the second half of the year," said Michele Morganti, equity strategist at Generali Insurance Asset Management.
The European stocks benchmark has pulled away from a one-year peak hit last week after major economies like Germany and France imposed new lockdowns.
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Asian stock
Asian stocks declined on Wednesday due to the extension of lockdowns by European governments, clouding the outlook for economic recovery.
Market benchmarks in Shanghai, Tokyo and Hong Kong retreated.
The Shanghai Composite Index lost 1.2% to 3,369.78 and the Nikkei 225 in Tokyo fell 2% to 28,405.52. The Hang Seng in Hong Kong retreated 2.1% to 27,905.54.
The Kospi in South Korea gave up 0.3% to 2,996.35. The S&P-ASX 200 in Australia gained 0.5% to 6,778.80.
India's Sensex opened down 1% at 49,502.30. New Zealand and Southeast Asian markets retreated.
In a report, Stephen Innes of Axi said "investors were left scrambling for life jackets, as it seems we are back navigating the stormy sea of the coronavirus pandemic.”
Investors are wavering between optimism about coronavirus vaccines that might allow business and travel to return to normal and concern about the pace of recovery.