European shares steady, Asian stocks slump as countries tighten restrictions

Gulf Today Report

European shares steadied on Tuesday as Europe tightens restrictions despite the vaccine rollout. 

The pan-European STOXX 600 index barely shifted as investors weigh their options.

London imposed stricter restrictions following the detection of a new coronavirus variant. 

According to media, the Italian government is looking at the prospects of imposing lockdown through Christmas and New Year. Although France is planning to relax its restrictions, the number of those hospitalised for COVID-19 is rising. 

The loss was led by banks. Automakers, miners and energy sectors recorded gains. 

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Asian Stocks

Asian stocks slid on Tuesday as investors remain worried about the increase in COVID-19 cases and tighter restrictions. 

EUROSTOXX 50 futures dipped 0.4% and FTSE futures fell 0.6%, indicating a weaker open for European stock markets. E-Mini futures for the S&P 500 were up 0.05%.

Most Asian markets retreated, with MSCI's index of Asia-Pacific shares outside Japan falling 0.6% to 637.8, the lowest in more than a week after having hit a string of record highs in recent weeks.

Chinese stocks eased 0.3% and Hong Kong lost 0.9%. 

In a report, Allianz Global Investors said: "While investors can approach 2021 with optimism that an effective COVID-19 vaccine will be available, the path of the economic recovery remains unclear."