Aaj English TV

Friday, March 29, 2024  
18 Ramadan 1445  

European stocks slide as Delta fears offsets growth hopes

Bitcoin recovered, sitting at around $46,000 after seeing wild fluctuations on Tuesday as...

LONDON: European stock markets extended losses Wednesday as worries about the impact of the Delta coronavirus variant on the global economic recovery tempered investor appetite.

In Asia, hopes for more Japanese stimulus helped Tokyo extend a recent rally.

While Tuesday saw Wall Street's Nasdaq clock yet another record with a small gain, the S&P 500 and Dow indices ended with a whimper as they reopened after a long weekend.

"Fears of slowing growth trimmed recent gains on... major indices, with expectations being revised to incorporate the effect that the Delta variant may be having on the performance of corporates in the current third quarter," noted Richard Hunter, head of markets at Interactive Investor.

Bitcoin recovered, sitting at around $46,000 after seeing wild fluctuations on Tuesday as El Salvador became the first country to use it as legal tender.

The unit had plunged by almost a fifth to as low as $43,000 after a technical issue hit the official digital wallet on vast consumer demand, though that was later resolved.

Traders are keeping a close eye on the fast-spreading Delta strain, which is sending infection rates spiking around the world and forcing some governments to reimpose containment measures or lockdowns, raising concerns about the economic recovery.

Still, observers say the general mood is positive for the future, with hopes that the US Federal Reserve will delay tapering its monetary policy until the end of the year lending support.

"Localised setbacks in combating the virus have the potential to contribute to market volatility and slow the economic rebound in selected countries," noted Mark Haefele at UBS Group AG.

"But we continue to see broad progress in curbing the pandemic and returning to economic normality."

Tokyo's Nikkei 225 ended above 30,000 points for the first time since April after Japan's Prime Minister Yoshihide Suga last week said he would stand down, raising hopes his successor will introduce fresh economic stimulus.

On Wednesday, one of the front-runners, Fumio Kishida, pledged to push for trillions of yen in investment if he takes the post.

Data showing growth in the second quarter was better than first thought added to the positive vibes in Japan.

The Nikkei has risen around five percent since the Suga news broke, putting the index on course for a three-decade high.

For the latest news, follow us on Twitter @Aaj_Urdu. We are also on Facebook, Instagram and YouTube.

Business

covid

European stocks

delta variant

stocks

Comments are closed on this story.

Comments

Taboola

Taboola ads will show in this div