European stocks struggle as virus worries weigh on fragile recovery

European stocks struggled for momentum in early deals on Friday, with a resurgence in coronavirus cases across the continent raising concerns about its impact on a nascent economic recovery.

The pan-European STOXX 600 index slipped 0.1% by 0708 GMT, with travel & leisure stocks leading the losses with a 1% decline. Market sentiment remained shaky as France registered a record 10,593 new confirmed coronavirus on Thursday, the highest single-day count since the pandemic began, while the United Kingdom also saw a surge in cases.

A spree of dealmaking drove activity in individual stocks. Spain’s state-owned Bankia slipped 2% after Caixabank valued it at 4.3 billion euros as part of a deal that will create Spain’s biggest domestic bank.

Euronext jumped 3.4% after London Stock Exchange said it had entered into exclusive talks to sell Borsa Italian to the French exchange operator.

Asian stocks inched up on Friday but lingering disappointment that central banks merely affirmed their monetary support this week, while not promising new stimulus, kept a lid on gains.

The Fed promised to keep rates low for a long time, but gave no new hints about any further monetary support. Hints did come from the Bank of England and the Bank of Japan on Thursday, but action was not forthcoming either.

MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.4% to head for its first weekly gain in three weeks. Japan’s Nikkei ended Friday down 0.2% for the week, while markets in South Korea and Australia scraped small weekly gains. The Shanghai Composite was the only market to make noteworthy gains, with financials leading a 1.8% rise.

In commodity markets, oil held sharp gains after OPEC and its allies said the group will take action on members that are not complying with deep output cuts. Brent crude futures were last 0.6% firmer at $43.55 a barrel and U.S. crude futures rose 0.5% to $41.19 a barrel.

This article was compiled by BOV Asset Management Limited, a member of the BOV Group. BOV Asset Management,TG Complex, Suite 2, Level 3, Brewery Str., Mriehel BKR 3000. Email: infoassetmanagement@bov.com Internet address: www.bovassetmanagement.com. BOV Asset Management is licensed by the MFSA.