European Stocks Advance At Open After Lockdowns

Europe's major stock markets advanced Thursday in opening deals, after dizzying losses the previous day, as investors digested new lockdowns in France and Germany to combat soaring coronavirus infection rates

London, (UrduPoint / Pakistan Point News - 29th Oct, 2020 ) :Europe's major stock markets advanced Thursday in opening deals, after dizzying losses the previous day, as investors digested new lockdowns in France and Germany to combat soaring coronavirus infection rates.

In initial deals, the benchmark Paris CAC 40 shares index rose 0.5 percent to 4,591.83 points, Frankfurt's DAX 30 added 0.6 percent to 11,624.32 and London's FTSE 100 gained 0.2 percent to 5,594.08. All three markets had fallen sharply the previous day.

"European stocks are off to a more promising start but any rally should be treated with extreme caution," OANDA analyst Craig Erlam told AFP.

"Downside risks have been evident for weeks, if not months, and we're starting to see some of these materialise.

"Covid-19 is obviously at the centre of much of this and the rapid increase we're now seeing -- particularly across Europe -- and the severity of the restrictions is a brutal reminder of the dark days of March and April and we're not close to the peak yet," Erlam said.

The analyst said that chronic uncertainty over US stimulus measures were also clouding the outlook.

Asian equities mostly fell on Thursday after the meltdown in New York and Europe, sparked by France reimposing a nationwide coronavirus lockdown -- and with fears other major economies could follow suit.

Europe had been pummelled Wednesday with Frankfurt stocks diving more than four percent, Paris slumping more than three percent and London losing 2.6 percent.

France's President Emmanuel Macron's decision to shut down the country for a month came as Germany said it would impose drastic new curbs as experts warned hospitals would soon be overwhelmed.

The moves followed weeks of exponentially rising new infections across Europe that have forced governments across the continent to put containment measures in place, with warnings that Britain could be next.