Europe Markets

European markets close higher despite coronavirus concerns

Key Points
  • The pan-European Stoxx 600 closed up by almost 0.5%, with oil and gas stocks jumping 1.7% to lead gains.
  • Stateside, the Dow Jones Industrial Average fell as concerns around a potential new wave of coronavirus cases offset gains from Big Tech stocks.
  • In terms of individual share price action in Europe, Network International gained 25% after seeking to reassure investors over its business prospects.

LONDON — European stocks closed higher Tuesday, attempting to bounce back from Monday's losses on coronavirus concerns and bank allegations.

The pan-European Stoxx 600 closed up by almost 0.5% provisionally, with oil and gas stocks jumping 1.7% to lead gains while the insurance sector dropped 1.2%.

European shares are seeking a recovery from Monday's losses; the pan-European Stoxx 600 fell over 3.2% by the close Monday, with banks plunging 5.7% and travel stocks tumbling 5.2% to lead losses as all sectors and major bourses slid into negative territory.

Airline stocks in Asia-Pacific tumbled in Tuesday morning trade as coronavirus fears returned, with major stock markets also seeing declines. 

Stateside, the Dow Jones Industrial Average fell as concerns around a potential new wave of coronavirus cases offset gains from Big Tech stocks. It follows a steep sell-off on Wall Street Monday.

The moves came as concerns over the outlook for travel resurface, with analysts warning that European countries are likely to impose more restrictions on public life in the coming days amid a rapid rise in the number of daily coronavirus infections. The U.K. is set to reimpose some restrictions, including forcing pubs and restaurants in England to close at 10 p.m., as the country faces a second wave of infections.

In terms of individual share price action in Europe, Network International gained 25% after seeking to reassure investors over its business prospects on Monday, with the company's share price having halved in the past week.

At the other end of the European blue-chip index, insurance group Beazley dropped 14% after raising its forecast for Covid-19 related claims.