Stocks in Europe fell on Wednesday as pessimism about the pace of the economic recovery from the coronavirus crisis took hold in financial markets.
Investors were looking specifically at the potential for further lockdown measures across the world, especially after the imposition of a hard border between two Australian states.
“It’s not the case that numbers and a return to stricter measures in and of themselves that are bothering investors, but rather the dampening effect they will have on the chances of a swift and sturdy global economic recovery,” said Connor Campbell, a financial analyst at trading platform Spreadex.
In Asia, stocks broadly declined, even as the market rally in China continued.
In recent days, state-run media in the country has encouraged retail investors to buy stocks in order to reap the benefits of the coronavirus recovery.
Shanghai’s SSE Composite Index (^SSEC) rose by more than 1.7% on Wednesday, recording its seventh straight day of gains. The CSI 300 Index (^CSI300), which combines shares listen in Shanghai and Shenzhen, rose by more than 1.6%.
The Hang Seng (^HSI) was 0.36% in the green in Hong Kong.
Futures were pointing to a higher open for US stocks on Wednesday.