European stocks resist drops in NY, Asia

LONDON — European stocks mostly rose on Wednesday despite losses in Asia and on Wall Street, and the collapse of the Super League football project comprising a dozen of the world's richest clubs, dealers said.

London stocks recovered 0.1 per cent one day after slumping 2 per cent in a Europe-wide selloff on intensifying pandemic concerns.

In the eurozone on Wednesday, Paris stocks added 0.3 per cent but Frankfurt shed 0.4 per cent.

"European markets are in recovery mode today, with stocks turning upward to regain lost ground after sharp declines yesterday," said analyst Joshua Mahony at trading firm IG.

"Markets are caught between optimism over vaccination progress at home, and the fact that global efforts to combat the pandemic remain reliant upon economic restrictions until vaccines are widespread."

On Wall Street, stock indices opened lower, adding to losses on Monday and Tuesday, with the Dow dipping less than 0.1 per cent as trading got underway.

"It's just kind of a blah morning, as buyers continue to lack vigor despite more good earnings news in general and a 10-year [US Treasury] note yield that continues to track favourably for stocks," said Patrick J. O'Hare at Briefing.com.

He said it was normal for stocks to pull back after the gains racked up in recent months.

"What it also typically does in the wake of selling after big runs is buy on the weakness, fortified in such pursuits by the persistence of low interest rates and tons of impatient cash looking for higher-yielding returns" but this hasn't yet happened, he added.

Asia faced big falls on fears over a renewed coronavirus surge.

Countries around the world are urgently working to accelerate vaccination campaigns and revive their pandemic-ravaged economies, with new variants of the pathogen driving unprecedented infection numbers in some of the worst-hit nations. 

Tokyo led the sell-off with the Nikkei down 2 per cent by the close after the port city of Osaka — where hospital beds for seriously ill coronavirus patients have run out — asked the central government to impose a state of emergency.

Infections there are rising just three months before the country hosts the virus-delayed Olympics, and Tokyo and several other areas are expected to follow in Osaka's footsteps.

Mumbai fell another 0.5 per cent on Wednesday as India battles a worrying virus surge and record daily case numbers overwhelm already stretched hospitals.

The capital New Delhi was locked down on Monday for a week, and the government said all adults would be eligible for a vaccine from May as it tries to get a grip on the crisis.