European markets react to coronavirus developments

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

The pan-European Stoxx 600 gained 0.5% in early trade, with tech shares jumping 1.4% to lead gains while the insurance sector slid 0.8%.

European shares are seeking a from Monday’s losses; the pan-European Stoxx 600 closed down by over 3.2% provisionally, 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. 

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.

More positive sentiment was seen Stateside with U.S. stock futures rising slightly in overnight trading on Monday following a steep sell-off on Wall Street Monday. Futures on the Dow Jones Industrial Average rose about 100 points. The S&P 500 futures gained 0.4% and the Nasdaq 100 futures were up 0.5%.

Shares of Tesla dropped nearly 6% in overnight trading after CEO Elon Musk said in a tweet that the electric carmaker’s “Battery Day” event would not reach “serious high-volume production” until 2022, which disappointed investors and analysts.

On the data front, the euro zone releases preliminary consumer confidence data for September.

In terms of individual share price action, Network International gained more than 11% in early trade 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 more than 12% after raising its forecast for Covid-19 related claims.

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