European stocks pulled back on Tuesday as a spike in coronavirus cases started to weigh on global market sentiment.
The pan-European Stoxx 600 dropped 1.1% by early afternoon, with tech stocks shedding 3.1% to lead losses while telecoms bucked the trend to add 1.2%.
European markets are following their global counterparts lower Tuesday as virus cases spike in a number of countries around the world. On Monday, World Health Organization Director-General Tedros Adhanom Ghebreyesus warned that “too many countries are headed in the wrong direction.”
“In several countries across the world, we are now seeing dangerous increases in Covid-19 cases, and hospital wards filling up again,” Tedros said. “It would appear that many countries are losing gains made as proven measures to reduce risk are not implemented or followed.”
Meanwhile, stocks in Asia Pacific fell in Tuesday morning trade, as China’s yuan-denominated trade data for June was released, with exports rising 4.3% year on year while imports increased 6.2% as compared to a year earlier, according to customs data. The data was being watched for clues on China’s economic recovery following the imposition of lockdowns earlier in the year to curb the spread of the coronavirus.