European Stocks Return to Rising Trend
European stocks plunged 2% in early trading. On Thursday, the pan-European Stoks 600 index closed up 0.41 points or +0.10% to 403.39 points, returning to the positive gains this year. Both German and French stock markets rose, and the British stock market fell 0.6% under the pressure of the British pound.
Global stock markets have increased volatility this week. American retail investors has impacted the US, European, and Asian markets, pushing up the value of some stocks that hedge funds have again placed bets.
U.S. stock technology stocks rose in early trading on Thursday; after American airline stocks announced their results, the Reddit forum discussed airlines, leading to a rise in aviation stocks.
European travel-related stocks such as Lufthansa, Tui (TUI), British Airways’ IAG Group rose between 4.7% and 7.2% due to industry incentives; low-cost airlines Wizz Air and easyJet rose more than 4.5%.
Other European stocks with higher bids this week continued to rise, such as game developer CD Projekt, medical supplies supplier Ambu, and car battery supplier Varta. Nokia plunged 13%; Nokia said on Thursday that it did not understand the reason for the recent stock price surge; however, it was estimated to be affected by the Reddit forum.
American investors ignore the excellent financial performance of Apple and Facebook, and the Fed’s easing policy. Instead, they are concerned about the slow pace of vaccine launch and more blockades in Europe.
Peel Hunt strategist Williams said that since the valuation level has determined the price for recovery from the epidemic, but the epidemic is far from over, correction is always possible.
Germany is preparing to impose immigration controls on travelers from the United Kingdom, Brazil, and South America; the German Health Minister expects the current vaccine shortage will continue until April.
The European Union warned AstraZeneca that unless the company submits the promised medicament, it will use all legal means and even block vaccine exports.
Swedish medical equipment manufacturer Getingey soared 9% after reporting strong profits; due to the new crown epidemic, demand for the company’s respirators and other life support equipment will increase significantly in 2020.
European Stocks Return to Rising Trend - /10