Stocks – Europe Bounces Modestly After Rout

March 11
07:05 2020

By Geoffrey Smith — Europe’s stock markets bounced at the open on Tuesday, after Italy announced a nationwide quarantine to stop the spread of the virus and President Donald Trump said the U.S. was preparing measures to support the economy.

Government bond yields were also higher, after plunging to new all-time lows during Monday’s rout of risk assets. However, a notable exception was Italy, where concern over the long-term impact of the virus on the economy has driven 10-year yields to a six-week high.

By 4:10 AM ET (0810 GMT), the benchmark Stoxx 600 index was up 3.6 points or 1.1% at 343.10. The U.K. FTSE 100 was up 1.0% and the German DAX was up 0.7%, while Italy’s FTSE MIB, the biggest loser on Monday, was up 0.3%.

Some of the biggest gains were in oil and gas, as crude prices also stabilized after their biggest drop in nearly 30 years on Monday.

BP (LON:BP) stock rose 3.7% while Royal Dutch Shell (LON:RDSa) rose 3.4% and Eni (MI:ENI) rose 2.7%. The gains are modest compared with declines that, in places, topped 20% on Monday.

Brent crude futures were up 5.4% at $ 36.23, while gold futures were down 0.7% at $ 1,663.65 a troy ounce.

Elsewhere, German chipmaker Infineon (DE:IFXGn) rose 1.8% after news that the U.S. had finally approved its planned takeover of Cypress Semiconductor.

The euro, which surged on Monday on the prospect of more aggressive easing from the Federal Reserve, gave up some of its gains, falling 0.5% to $ 1.1391.

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