As Wall Street recovers, European stocks rise.
Investors weighed higher economic activity against fears about Covid’s fast-spreading Delta version as European stock markets surged Wednesday, tracking Wall Street gains.
Surges in infections have shattered investor confidence, which had been created on the backs of vaccinations and massive government and central bank financial backing.
However, Wall Street rebounded on Tuesday and early Wednesday, boosting enthusiasm in Europe and Asia.
According to Joshua Mahony, senior market analyst at IG Trading Group, “a robust comeback for US markets has trickled through to Europe.”
The Delta variety, on the other hand, “will undeniably rise in prominence around the world.” As a result, there are concerns that countries with low immunization rates will be unable to cope without imposing severe restrictions,” he noted.
“Efforts across many locations to restrict the virus’ spread has lowered lofty expectations about demand for things like travel and tourism,” said Fawad Razaqzada, an analyst at ThinkMarkets.
Meanwhile, experts predict that borrowing costs will begin to rise in anticipation of higher interest rates when businesses recover and inflation rises.
Oil prices rose in commodities trading on Wednesday after plunging sharply due to anticipation of lower demand and a decision by OPEC and its allies to raise production.
According to OANDA’s Jeffrey Halley, “oil is particularly vulnerable to intraday changes in risk sentiment and will stay so for the rest of the week.”
New York – The Dow Jones Industrial Average is up 0.8 percent at 34,780.99 points.
At 4,016.45, the EURO STOXX 50 index is up 1.5 percent.
The FTSE 100 index rose 1.7 percent to 6,997.59 points in London.
DAX 30 in Frankfurt is up 1.2 percent to 15,396.76.
CAC 40 in Paris is up 1.7 percent to 6,451.83 points.
Nikkei 225 in Tokyo is up 0.6 percent at 27,548.00. (close)
The Hang Seng Index in Hong Kong is down 0.1 percent at 27,224.58. (close)
Shanghai Composite: 3,562.66, up 0.7 percent (close)
At 2210 GMT, the euro/dollar was trading at $1.1788, up from $1.1780.
Pound/dollar: $1.3677 is up from $1.3620.
Euro/pound: 86.17 pence, down from 86.44 pence.
Dollar/yen: Up from 109.87 yen to 110.23 yen.
Brent North Sea crude is trading at $71.16 a barrel, up 2.6 percent.
West Texas Intermediate: $69.02 per barrel, up 2.7 percent.