European markets watch coronavirus spike weigh on sentiment

European stocks fell back on Tuesday when a surge in coronavirus cases began to weigh on global market sentiment.

The pan-European Stoxx 600 fell 1.1% in the early afternoon, with tech stocks losing 3.1% to lead losses, while telecommunications resisted the trend of adding 1.2%.

European markets follow their global counterparts lower on Tuesday as virus cases rise in several countries around the world. On Monday, the Director General of the World Health Organization, Tedros Adhanom Ghebreyesus, warned that “too many countries are heading in the wrong direction.”

“In several countries around the world, we are now seeing dangerous increases in Covid-19 cases, and hospital wards are filling up again,” said Tedros. “It appears that many countries are losing realized gains as proven measures are not implemented or follow to reduce risk.”

Meanwhile, Asia Pacific stocks fell in trade on Tuesday morning, as China’s yuan-denominated trade data was released for June, with exports increasing 4.3% year-over-year, while imports rising 6.2% compared to the previous year, according to customs data. The data was being watched for clues to China’s economic recovery after the imposition of blockades earlier this year to curb the spread of the coronavirus.