The pan-European STOXX 600 index closed up 0.7 per cent, after losing as much as 1.2 per cent during the session as oil prices plunged due to oversupply concerns. — Reuters pic
The pan-European STOXX 600 index closed up 0.7 per cent, after losing as much as 1.2 per cent during the session as oil prices plunged due to oversupply concerns. The energy sector posted its fourth decline in five sessions. “On one hand we're getting the reality check of company earnings and real data from the global and European economy, but on the other hand we've got the impact of significant fiscal and monetary stimulus coming through,” said Richard Dunbar, head of multi-asset research at Aberdeen Standard Investments.
The travel and leisure sector, worst hit by the pandemic, has recouped almost half its losses since March lows, but still remains about 40 per cent down for the year. “Instead of confronting a steep recession, we might end up with a long-lasting depression,” he added. “Equity performance cannot diverge for a prolonged period of time from fundamentals, so if we do not see a true economic recovery in the coming months, we expect another leg lower in stock markets.”