European stocks dip after Wall Street closes lower

Date:

European stocks fell on Thursday as new variants of the Omicron coronavirus continued to boost market volatility after falling on Wall Street later in the previous session.

Europe’s STOXX 600 fell 0.9% as traders responded to the first discovery of new stocks In the United States Continued on Wednesday Rapid increase in incidents in South Africa.. The FTSE 100 in London fell 0.6% and the German Dax fell 0.8%.

European stocks and oil prices rose early on Wall Street as traders repurchased into economically sensitive banks and industrial stocks. collapsed The day before.

But the S & P500 Equity Gauge Closed 1.2% cheaper New York recorded the largest diurnal volatility since March, with the index falling almost 2% following Tuesday’s penalties session.

Gregory Perdon, Co-Chief Investment Officer of Arbuthnot Latham, said:

Wall Street’s so-called horror gauge, Vix, which measures expected stock market volatility, traded at a high of about 28 on Thursday. This is above the long-term average of about 20.

“Whenever Vix is ​​trading at these levels, it can be a contrarian indicator and tends to mean a decent buying opportunity,” Perdon said.

Futures contracts tracking the S & P 500 in the morning in Europe rose 0.8%.

The market was also announced on Tuesday by Federal Reserve Chairman Jay Powell. Willing to accelerate A $ 120 billion reduction in monthly bond purchases by the central bank, which has supported the stock market since March 2020.

The World Health Organization declared Omicron last weekVariant of concern, “Is characterized by a number of mutations that have caused fear that the protection provided by the vaccine may be circumvented.

The government is rushing to tighten travel bans in response to the spread of new variants.US President Joe Biden late Thursday Announce new measures The purpose is to deal with Omicron.

Investors want this variant to be as manageable for policy makers and vaccine producers as the Delta variant of the virus. Temporarily shook US and European stock markets in July before hitting last month’s highs in response to economic recovery and strong corporate earnings.

“It’s not worth the hassle,” said Jeremy Gatto, Multi-Asset Investment Manager at Unigestion.

“The vaccine is completely ineffective and the risk of further blockade is not our core scenario,” he added. “But obviously the short-term risk to the market has increased.”

Benchmark 10-year Treasury yields rose 0.01 percentage points to about 1.45 percent. Brent crude, the oil benchmark, rose 2.2% to $ 70.32 a barrel after recent turbulence.

Asian stocks are mixed, with the Hang Seng Index in Hong Kong rising 0.5% and the Nikkei 225 in Tokyo falling 0.7%.

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