European stocks resist drops in NY, Asia

LONDON: European stocks mostly rose Wednesday despite losses in Asia and on Wall Street, and the collapse of the Super League football project comprising a dozen of the world's richest clubs, dealers said.

London stocks recovered 0.1 percent one day after slumping 2.0 percent in a Europe-wide selloff on intensifying pandemic concerns.

In the eurozone on Wednesday, Paris stocks added 0.3 percent but Frankfurt shed 0.4 percent.

"European markets are in recovery mode today, with stocks turning upward to regain lost ground after sharp declines yesterday," said analyst Joshua Mahony at trading firm IG.

"Markets are caught between optimism over vaccination progress at home, and the fact that global efforts to combat the pandemic remain reliant upon economic restrictions until vaccines are widespread."

On Wall Street, stock indices opened lower, adding to losses on Monday and Tuesday, with the Dow dipping less than 0.1 percent as trading got underway.

"It's just kind of a blah morning, as buyers continue to lack vigor despite more good earnings news in general and a 10-yr (US Treasury) note yield that continues to track favorably for stocks," said Patrick J. O'Hare at Briefing.com.

He said it was normal for stocks to pull back after the gains racked up in recent months.

"What it also typically does in the wake of selling after big runs is buy on the weakness, fortified in such pursuits by the persistence of low interest rates and tons of impatient cash looking for higher-yielding returns" but this hasn't yet happened, he added.

Asia faced big falls on fears over a renewed coronavirus surge.

Countries around the world are urgently working to accelerate vaccination campaigns and revive their pandemic-ravaged economies, with new variants of the pathogen driving unprecedented infection numbers in some of the worst-hit nations.

Tokyo led the sell-off with the Nikkei down two percent by the close after the port city of Osaka -- where hospital beds for seriously ill coronavirus patients have run out -- asked the central government to impose a state of emergency.

Infections there are rising just three months before the country hosts the virus-delayed Olympics, and Tokyo and several other areas are expected to follow in Osaka's footsteps.

Mumbai fell another 0.5 percent on Wednesday as India battles a worrying virus surge and record daily case numbers overwhelm already stretched hospitals.

The capital New Delhi was locked down Monday for a week, and the government said all adults would be eligible for a vaccine from May as it tries to get a grip on the crisis.

Focus was also on the implosion of the European Super League (ESL) project after all six English clubs involved withdrew, following a furious backlash from fans and football authorities.

Atletico Madrid, Inter Milan, AC Milan and Juventus then announced Wednesday that they were pulling out, dealing a fatal blow to the ESL and whittling the original "Dirty Dozen" down to just Real Madrid and Barcelona.

Shares in publicly-listed Italian side Juventus plunged Wednesday by more than 13 percent in Milan.

England's Manchester United saw its New York stock rebound 0.5 percent, having tumbled by six percent on Tuesday.

"Total football, total shambles," summarised Markets.com analyst Neil Wilson.

Key figures around 1330 GMT -

London - FTSE 100: UP 0.1 percent at 6,866.33 points

Frankfurt - DAX 30: DOWN 0.4 at 15,077.08

Paris - CAC 40: UP 0.3 percent at 6,180.79

EURO STOXX 50: UP 0.3 percent at 3,951.01

New York - Dow: DOWN less than 0.1 percent at 33,812.78

Tokyo - Nikkei 225: DOWN 2.0 percent at 28,508.55 (close)

Hong Kong - Hang Seng Index: DOWN 1.8 percent at 28,621.92 (close)

Shanghai - Composite: FLAT at 3,472.93 (close)

Euro/dollar: DOWN at $1.2006 from $1.2036

Pound/dollar: DOWN at $1.3894 from $1.3937

Euro/pound: UP at 86.42 pence from 86.36 pence

Dollar/yen: DOWN at 108.03 yen from 108.11 yen

Brent North Sea crude: DOWN 1.8 percent at $65.37 per barrel

West Texas Intermediate: DOWN 2.1 percent at $61.34 per barrel