Europe: Stocks knocked lower by virus, tariff fears

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[BENGALURU] European stocks slumped to a one week-low on Wednesday as a surge in coronavirus cases and news that US was weighing tariffs on European products dashed investors hopes of a speedy economic recovery. Read more at The Business Times.

European stocks slumped to a one week-low on Wednesday as a surge in coronavirus cases and news that US was weighing tariffs on European products dashed investors hopes of a speedy economic recovery.[BENGALURU] European stocks slumped to a one week-low on Wednesday as a surge in coronavirus cases and news that US was weighing tariffs on European products dashed investors hopes of a speedy economic recovery.

The pan-European Stoxx 600 closed 2.8 per cent lower, recording its second worst fall this month. Economically sensitive cyclical sectors such as travel & leisure, automakers, oil & gas and banks led declines, falling between 3.7 per cent and 4.7 per cent. Many US states saw record daily increases in Covid-19 infections amid easing of lockdowns, while a media report that European Union countries are prepared to bar entry to Americans raised worries of fresh restrictions.

Further adding to woes, the United States may modify duties on a range of EU products and was weighing tariffs on other products from Britain, France, Spain and Germany that have an approximate value of US$3.1 billion, according to the Office of the US Trade Representative. "Coming at a particularly difficult time for markets, this breakdown in relations provides another reason for traders to be cautious about the forthcoming period," said Joshua Mahony, senior market analyst at IG.

 

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