Europe Finds the Excuse to Correct its Losses

The European stocks have not had a good day this Tuesday. They started the day with contained decreases, but sales have been imposed little by little. The reductions were close to 2% in EuroStoxx and exceeded 1.5% in the German DAX. 

Equities started the day in moderation, with an eye on Wall Street, where red numbers predominated and ended the second day with declines. However, the expected news from the EMA about the Janssen vaccine has sparked strong sales. In the US, they have been contained, but in Europe, especially in the stock markets of Spain and Italy, which are more dependent on tourism, the falls have reached 3%. Sales for the rest of the indices have also accelerated.

A new blood clot warning hit the markets yesterday

Since the announcement of the European Medicines Agency approving the Janssen vaccine, the European market had been registering a solid overbought. Still, it took a slight disappointment for the markets to fall.

 After admitting links to clot problems, investors started worrying about delays and limitations in use, as happened with the Astrazeneca vaccine, with similar issues.

Karim Moussalem from London-based Fitzgerald Europe stated that the market had run out of buyers. According to him, that’s what happens when a potentially very uncertain prospect suddenly opens up. 

He remarked that the airline, hotel, and travel sectors had suffered the most. And he mentioned that it makes perfect sense that they return to their lower price range.

Despite the fact, the EMA’s decision to resume the deployment of the Johnson & Johnson vaccine stimulated hope for a somewhat less distant return to normality in Europe. 

On Wednesday, European stock markets opened higher after suffering their worst day of the year on Tuesday. At the time of writing, Euro Stoxx 50 gained 0.63% to 3965.1 units. The DAX posted an increase of 0.18% to 15157.460 units.