European stocks reversed earlier losses on Thursday, even as a continued rise in coronavirus infections in the US. USA Fears of a prolonged global recovery from the pandemic increased.
About 37,000 new cases were reported in the United States on Wednesday, the highest daily total since April, and the worst outbreak was in the south and west of the country.
Amid a hectic trading session, the pan-European STOXX 600 index (^ STOXX) rose around 0.2%, while the London FTSE 100 (^ FTSE) declined marginally.
Germany’s DAX (^ GDAXI) was up around 0.7%, while France’s CAC 40 (^ FCHI) was approximately 0.3% green.
The International Monetary Fund lowered expectations for the world economy in 2020 and 2021 on Wednesday, projecting negative growth for all regions of the world for the first time in its forecast history.
Investors say the large number of cases in the US The US, the world’s largest economy, will further delay the already protracted recovery. Several states are imposing new restrictions and encouraging people to stay home.
“Investors are throwing their heads a little as the increase in cases raises concerns about how quickly the US economy can come out of the ashes. There are also groups in Germany, of course, but the focus is on the divergence between the European and American experience, “said Neil Wilson, chief market analyst at Markets.com.
Changes in Europe followed a largely negative session for equities in Asia.
The Chinese Composite SSE Index (^ SSEC) was up 0.3% on Thursday, but the Hang Seng (^ HSI) was down 0.5% in Hong Kong as the market closed.
Japan’s Nikkei (^ N225) closed more than 1.2% in red, while the KOSPI Composite Index (^ KOSPI) in South Korea declined by almost 2.3%. Australia’s ASX 200 (^ AXJO) fell about 2.5%.
Futures pointed to a lower open for US stocks on Thursday.
S&P 500 futures (ES = F) fell about 0.4%, while Dow Jones Industrial Average futures (YM = F) declined about 0.5%. Nasdaq futures (NQ = F), meanwhile, fell about 0.1%.