BUSINESS European stocks mostly rebound in early deals

BUSINESS

European stocks mostly rebound in early deals

AFP

17:17, March 17, 2020

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European stock markets mostly rebounded in the first hour of trading Tuesday, as virus-fuelled volatility grips investors.

After opening with a gain of 2.2 percent, London's benchmark FTSE 100 index was down 0.5 percent around 40 minutes later.

Elsewhere, Frankfurt was up 1.0 percent having surged 4.5 percent at the open.

Around 0840 GMT, Paris was 1.6-percent higher, Milan climbed 2.1 percent and Madrid jumped 3.7 percent.

"As has been the case every time the European markets have tried to rebound, it is not going to be smooth sailing," noted Connor Campbell, analyst at Spreadex trading group.

Europe's main stock markets had closed lower Monday, with London losing 4.0 percent before Wall Street tanked with a loss of nearly 1 percent.

In a move meant to help tame the massive volatility in the markets caused by the coronavirus outbreak, the French bourse regulator on Tuesday said it was banning short-selling in 92 stocks for the day. 

"Taking into account the significant losses in recent days on the financial markets, the Financial Markets Authority (AMF) has decided to take an urgent step," it said in a statement.

The ban order covers mostly bank and financial stocks.

Investors use short-selling to bet the market will fall, putting tremendous downward pressure on prices at a time when buy interest is virtually non-existent.


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