Fundamental Comment

European stocks snap some gains on renewed concerns

European stocks snap some gains on renewed concerns

European stock indices rose during Friday's trading, led by miners after strong China output data, yet some of the gains were snapped on worries about coronavirus and renewed US-China trade war.

As of 13:55 GMT, the Euro Stoxx 50 index rose 0.034 percent to trade near 2,761.18 points.

German DAX 30 index ascended 0.7 percent and now settles near 10,411.36 points, while French CAC 40 reached 4,271.13 points, down 0.036 percent.

Britain’s FTSE 100 Index ascended to 5,792.84 points, bringing its increase today to about 0.89 percent.

The rise in European stocks comes as investors are watching about the efforts of countries to reopen their economy again, but still there are worries about a second wave of Covid-19 infections.

the Robert Koch Institute for Disease Control said yesterday that the rate of transmission of the deadly virus remained stable in Germany after the first steps to ease the closures.

Eurostat statistics data released On Friday showed that the eurozone's GDP contracted by a seasonally adjusted reading of 3.8 percent in the three months to March, compared with 0.1 percent growth in the previous quarter.

In the United States, retail sales saw its sharpest decline on record in April, as the Census Bureau data signaled a worse than forecast 16.4 percent plummet.  

While there is optimism that China’s growth could rebound in the second half of this year, there are worries that another trade clash with the United States would curb the recovery.

At press time, the EUR/USD pair rose today, reaching 1.0842 levels, while the pair opened today’s session at 1.0806. However, the single currency is still on track for a second straight weekly loss.

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