European markets react to increase in coronavirus cases

European stocks opened lower on Wednesday due to an increase in US coronavirus cases. USA And beyond that, and regional outbreaks in Germany scared investors.

The pan-European Stoxx 600 fell 1.5% during initial trade, with all sectors and major exchanges in negative territory. Car stocks, which were 2.3% lower, led the losses in the region.

Investor sentiment has been shaken by an increase in the number of Covid-19 cases worldwide as economies emerge from the blockade. White House health adviser Dr. Anthony Fauci warned Tuesday that parts of the United States are beginning to see a “disturbing increase” in Covid-19 cases.

Fauci also said, however, that states with growing coronavirus outbreaks may not need to do an “outright shutdown.” So far, more than 2 million people in the US USA They have been infected with the coronavirus, according to data collected by Johns Hopkins University.

Shares in Asia Pacific rose mainly on Wednesday morning, while US equity futures rose. USA They also increased overnight, despite concerns about the increase in cases in the US. USA

As for individual stocks, Germany’s Wirecard fell to the Stoxx 600 fund after some tumultuous days, with stocks erasing previous gains to shed 10%. The payment firm was embroiled in a scandal after announcing that auditors couldn’t find € 1.9bn in cash on its balance sheet, leading to the arrest of former CEO Markus Braun.

Sweden’s Evolution Gaming fell to the bottom of the Stoxx 600 after Reuters reported that it had made an offer to buy NetEnt AB for SEK 19.6 billion ($ 2.1 billion). The company’s shares fell more than 8% during the first offers.

Meanwhile, German real estate company LEG Immobilien, which lost 3% on Wednesday morning, was also at the bottom of the first-class European index.