European equities recovered some of their losses on Tuesday after fears of economic growth led to the sharpest decline in global equities since June 2020.
The regional Stoxx 600 meter rose 0.8%, after falling 2.9% on Monday. The London FTSE 100 index rose 0.7%, with the acquisition group Melrose Industries, industrial software company Aveva and tobacco company Imperial Brands among the top 10 rises.
In Hong Kong, the Hang Seng Index fell 1.8% after opening with sharp declines after the holiday. Territory-listed Chinese technology groups recorded some of the biggest declines, with the Hang Seng Tech index down 3.2%.
Tuesday’s moves came later steep downhillFor equities the day before, when the FTSE All-World Index fell 3%, reaching its lowest level in more than a year. The U.S. broad S&P 500 closed 3.2% and the technology-focused Nasdaq Composite lost 4.3%.
The losses came after him dismal Chinese export data, Which showed that growth slowed sharply last month as severe corona virus locks continued to drag the world’s second-largest economy. Pointing to a broader decline in growth, reports last week indicated a slowdown in the economy German and French Production sectors.
The weak data added to existing concerns about the economic outlook as central banks moved to tighten monetary policy aggressively to curb rising inflation. The US Federal Reserve last week raised interest rates by half a percent – the largest increase in more than a decade. The Bank of England has also raised credit costs, as have the banks of Australia and India.
Futures that follow the S&P and the concentrated Nasdaq 100 indices showed early signs of recovery on Tuesday, up 0.7% and 1.3% respectively. Still, indicating expectations of further fluctuations to come, the Vix index – known as the Wall Street “fear meter” – recorded a reading of 33, well above its long-term average of 20.
New York investment house BlackRock last week reversed its bullish stance on China, downgrading its “modest excess weight” in the country’s equities and bonds to a neutral level amid the deteriorating economic outlook – despite promises of support from Beijing last month.
“We are seeing a growing geopolitical concern about Beijing’s ties with Russia. This means that foreign investors may face more pressure to avoid Chinese assets for regulatory or other reasons,” said the BlackRock Investment Institute, an internal research unit headed by Jean Bowen.
“The closures are expected to reduce economic activity. China’s policymakers have announced easing to prevent a slowdown in growth – but have not yet fully acted.”
The world’s largest asset manager has expanded its presence in China, and its research unit has previously recommended investors Increase exposure To the country up to three times.
In government bond markets, the 10-year yield on the U.S. Treasury bill – considered a measure of global credit costs – fell 0.04 percentage points to 3.4 percent, after a late rise in the previous session when traders rushed to acquire assets.
Meanwhile, Bitcoin fell below $ 30,000 for the first time since July 2021, when the world’s largest cryptocurrency by market value was hit by investor movement Away from more risky assets.
This story has been corrected to make it clear that the fall in global equities, rather than Wall Street shares, on Monday was the sharpest since 2020.
European shares steady after steepest slide for global stocks since 2020 Source link European shares steady after steepest slide for global stocks since 2020