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European markets rallied, but then lost some of their gains, while markets in the Asia-Pacific region were mixed on Tuesday as investors tried to grapple with a disastrous Monday on Wall Street.
European equities started its trading higher on Monday following new development regarding the coronavirus vaccine. Also, the Union decided to close its external borders. The first human trial to evaluate a candidate vaccine against the new coronavirus has begun in Seattle yesterday, raising hopes in the global fight against the disease.
Meanwhile, investors are looking upon the data to be released. UK National Statistics will release the ILO Unemployment Rate while Eurostat will put out Europe construction output data. The Zentrum für Europäische Wirtschaftsforschung will report the data on the Economic Sentiment of the European Union and Germany as well.
Europe’s lockdown over the coronavirus continues to dominate headlines. Italy and Spain remain the worst-hit countries but France and Germany have also reported sharp rises in cases. The French president announced that the European Union would be closing its external borders on Tuesday.
Macron: We Are at War
French President Emmanuel Macron ordered the citizens to stay at home for at least the next 15 days, as France put in place some of the harshest measures in Europe to try to detain the fast-spreading coronavirus.
Addressing the nation, Macron said:
“We are at war. The enemy is invisible and it requires our general mobilization.”
UK Prime Minister Boris Johnson stated:
“Now is the time for everyone to stop non-essential contact with others and to stop all unnecessary travel. You should avoid pubs, clubs, theaters and other such social venues.”
He added people should work from home where possible as part of a range of severe new measures. Also, it is recommended that pregnant women, people over the age of 70 and those with certain health conditions should consider the advice “particularly important.” People in at-risk groups will be asked within days to stay home for 12 weeks.
U.S. Tests the Vaccine on People
In the U.S. on Monday, President Donald Trump said the country could be heading for a recession due to the coronavirus outbreak. However, premarket was pretty optimistic after the information that the first human trial to evaluate a candidate vaccine against the new coronavirus has begun in Seattle yesterday, raising hopes in the global fight against the disease. Dow Jones jumped more than 660 points on Tuesday in premarket at 4:40 am ET after it hit “limit up” following Wall Street big losses on Monday amid concerns over the economic crash from the coronavirus spread.
Also, the United States House of Representatives sent the emergency funding bill aimed at mitigating the impact of the COVID-19 to the Senate for a vote.
Telecom Stocks Rising
Volkswagen AG (ETR: VOW3) announced it will suspend production this week due to the concerns over coronavirus. The statement released noted that Friday will be the last working day for the majority of employees.
The FTSE 100 rose 2.52% as the session in London kicked off. Melrose Industries Plc (LON: MRO) was the best performer jumping by 7.37%. The DAX jumped 4:47% at 9:03 am CET with Covestro AG (ETR: 1COV) growing by 5.70%. In Paris, the CAC 40 added 3.22% at open with Bouygues SA (EPA: EN) rising 6.39%. Shares of the French telecom company Iliad SA (EPA: ILD) jumped 18% after it released full-year results, while British office provider IWG PLC (LON: IWG) gained 17.7% amid a volatile
Earlier the pan-European Stoxx 600 slipped 1.1% amid a choppy session, having gained 3% at the opening bell. Travel and leisure stocks plunged another 10% as shutdowns continue to hammer the sector.