European stocks rebound, Asian shares drop

Gulf Today Report 

European stocks rebounded on Wednesday following a strong earnings season countering worries about the surge in COVID-19 cases in various countries. 

The pan-European STOXX 600 index rose 0.4% after a blistering seven-week rally ran into a bout of profit-taking on Tuesday when it fell 1.9%.

Tech stocks led the gain with a 1.3 % increase. German fashion house Hugo Boss jumped by 7.5%. 

"While the UK and the US may be moving towards re-opening, it's not necessarily a straight line of recovery," said Joshua Mahony, senior market analyst at IG. "What's been happening in Brazil and

India highlights the fact the virus is a massive issue."

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According to data, European earnings are forecasted to record a 61% gain in the first quarter of 2021. 

Asian shares

In Asia, shares fell on Wednesday Wall Street declined for a second day due to drops in tech and banks.

The Nikkei 225 in Tokyo gave up just over 2.0% to 28,508.55 while Hong Kong's Hang Seng declined 1.7% to 28,655.76. In Seoul, the Kospi lost 1.5% to 3,171.66, while Sydney's S&P/ASX 200 shed 0.3% to 6,997.50. The Shanghai Composite index ended flat at 3,472.93. 

Asia has recorded a surge in coronavirus cases in recent weeks forcing the government to scramble for COVID-19 vaccines. 

"Global stocks are still plumbing the lows after renewed virus concerns spooked markets overnight," Stephen Innes of Axi said in a commentary.