European shares fell after a strong run this week on Thursday after the latest business activity data revealed the damaging impact of the coronavirus crisis. 

The pan-European STOXX 600 fell by 1.0%, withdrawing from its strongest closing in three weeks, driven by declines in travel and leisure.

Earlier data showed the devastating effect of the pandemic on the eurozone economy fell slightly in May as lockdowns imposed to contain the spread of the virus were eased, but were still a long way from marking a growth. 

After crashing down to rock in April, the Flash Composite Purchasing Managers Index of the IHS Markit recovered from April 13.6 to 30.5. 

Globally, stock markets made headway this week as optimism over easing lockdowns and more stimulus talks for the battered eurozone rekindled hopes for recovery. 

Yet rising U.S.-China tensions and long-term outlook concerns have stalled a sharp rebound from mid-March lows in markets. 

“We are beginning to see a bit of momentum lag,” said Craig Erlam, Oanda ‘s senior market analyst. “Until we see the countries reopening and fully understanding what the negative implications will be, the rally can only continue until now.” 

The U.S. Senate passed legislation on Wednesday that could prevent some Chinese companies from listing their shares on U.S. exchanges, adding to woes after intense criticism from the Trump administration about the handling of the coronavirus crisis in Beijing. 

Among individual movers, the Amsterdam-based telecommunications and cable group Altice Europe NV (ATCA.AS) was down 14.3 per cent as it posted a core profit that was worse than expected in the first quarter. 

Premier Inn owner Whitbread Plc (WTB.L) tumbled 12 per cent after revealing plans to raise 1.01 billion pounds ($1.23 billion) through a rights issue as the company is looking to strengthen its balance sheet in the midst of the pandemic.

Leave a Reply

Your email address will not be published. Required fields are marked *