European stocks mixed as investors assess surging coronavirus cases

Edmund Heaphy
·Finance and news reporter
Updated ·2 min read
The sun rises over Frankfurt, Germany, with the buildings of the banking district at right, early Thursday, July 2, 2020. (AP Photo/Michael Probst)
The sun rises over Frankfurt, Germany, with the buildings of the banking district at right. Photo: Michael Probst/AP

European stocks were mixed on Tuesday as investors weighed positive economic data against surging coronavirus cases across the world.

While the number of infections appeared to slow in several US hotspots on Monday (3 August), Australia’s second-largest city, Melbourne, announced fresh restrictions designed to curb a spike in cases.

Brazil and India continue to see a high caseload, while Spain, Belgium, and Luxembourg have also seen an uptick in infections.

Stocks had risen on Monday in the wake of broadly positive data from Europe’s manufacturing sector. New orders in the UK and Germany grew sharply in July, suggesting a continued rebound across the continent.

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The pan-European STOXX 600 index (^STOXX) fell by around 0.3% after earlier gains, while London’s FTSE 100 (^FTSE) was 0.1% in the red.

Germany’s DAX (^GDAXI) fell by around 0.4%, while France’s CAC 40 (^FCHI) climbed by more than 0.3%.

The mixed session in Europe followed a strong trading session in Asia.

Shanghai’s SSE Composite Index (^SSEC) rose by almost 0.1% on Tuesday, while the Hang Seng (^HSI) closed almost 2.2% in the green in Hong Kong.

Japan’s Nikkei (^N225) rose by 1.7%, while the KOSPI Composite Index (^KOSPI) in South Korea climbed by around 1.3%. Australia’s ASX 200 (^AXJO) rose by almost 1.9%.

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Futures were pointing to a lower open for stocks in the US, where investors will be watching talks about fresh stimulus measures.

Democratic lawmakers hinted on Monday that they were closer to agreeing a deal with the White House. But they are still at loggerheads over an unemployment benefit extension.

Futures on the S&P 500 (ES=F), which on Monday closed within 3% of the record high it set in February, fell by around 0.3%. Dow Jones Industrial Average futures (YM=F) fell 0.1%. Nasdaq futures (NQ=F), meanwhile, were down by around 0.3%.