FRANKFURT, July 13 ― European stocks scaled new highs yesterday on broad-based gains, but worries about the pace of economic recovery made defensive sectors the best bid while travel stocks slumped with the Delta variant of coronavirus becoming dominant.
Real estate, utilities and healthcare were among the best-gaining sectors, up between 1.4 per cent and 1.6 per cent. Travel and leisure dropped 1.3 per cent with British airlines leading losses. “Airlines are likely to continue on a relatively bumpy path as the UK shows its willingness to allow Covid levels to surge as a result of the reopening efforts,” said Joshua Mahony, senior market analyst at online trader IG.
“The sharp decline in bond yields over the past week has not yet been reflected in stock markets or commodities,” analysts at BCA Research wrote. “A correction over the next few months cannot be ruled out.”