LONDON – European stocks were higher on Tuesday morning, trying to recover from a brutal sell-off in the previous session as investors’ sentiment was shaken by a new corona virus strain in the UK.
Pan-European Stokes 600 Traded 1.1% higher with Germany DAX And France’s CAC indices are both up 1.3%. Of Britain FTSE 100 The downward trend of 0.2% increased. Bank shares rose 2.2% and Lloyds led the sector with a gain of over 4%.
European markets came under heavy selling pressure on Monday amid concerns over the fast-spreading govt mutation first identified in Britain. The new variation forced the UK government to close London and other parts of southeastern England and step back from mixing homes during the Christmas break.
This variant, which scientists say is 70% more prevalent in the UK than previous strains, has also been identified in Italy, the Netherlands, Belgium, Denmark and Australia. This has led many countries around the world to close borders to Britain, disrupt travel and raise concerns about food shortages as the Brexit transition deadline approaches.
Meanwhile, as the UK and EU approach the December 31 deadline, post-Brexit trade ties are stalled and there are controversies over issues such as fisheries talks. British Prime Minister Boris Johnson on Monday said the country could still collapse without an agreement.
“The situation will not change, there are problems,” British Prime Minister Boris Johnson told reporters on Monday. “It is important for everyone to understand that the UK can fully control its own laws and control our own fisheries.”
“We can certainly overcome any difficulty thrown our way beyond the terms of the World Trade Organization to the satisfaction of the UK.”
On Tuesday, Sterling extended its losses to Monday, and fell 0.5% to 34 1.34.
Official data shows that the UK’s GDP grew by 16% in the third quarter, but did not fall by 18.8% when most of the economy closed in the previous quarter.
In Asia, stocks plummeted amid the new corona virus strain. The broadest index of Asia-Pacific shares of MSCI outside Japan fell 0.43%.
On Wall Street, stock futures mixed following a volatile session that wiped out the Dow Jones Industrial Average 400 point deficit.
The paralysis came as Congress passed a corona virus relief and government spending package on Monday night. The bill now goes to the table of President Donald Trump.
Looking at individual stocks, disruptions could lead to gaps in shelves as British supermarket stocks flagged from international travel bans on Tuesday. Sainsbury’s fell nearly 0.5%, while P&M Europe fell 0.2%.