European Stocks Are Experiencing Losses
Thursday was one of the final trading days of the year. Fears about Covid-19 spreading from China led to a decline in European stocks as well as equities across Asia.
Futures contracts for Euro Stoxx 50 index dropped along with equity benchmarks from South Korea, China, Australia and Japan on a light trading day Thursday. Hong Kong tech stocks were the hardest hit. After the S&P 500 index fell 1.2% to its lowest point in more than a month, contracts for the index fluctuated.
The yield on New Zealand 10-year government bonds increased. The yield on 10-year Treasury bonds, however, increased but stabilised in contrast.
Fear appetite was diminished by the news that US airlines would require Chinese passengers arriving from China to pass a COVID-19 negative test before they can enter the country. Two flights from China to Milan had the majority of passengers with the virus.
After a tough year for financial markets, sentiment was affected in the final trading week 2022 by possible pandemic disruptions to fragile supply chains and central banks struggling to control inflation. Global stocks have lost one-fifth of their value, while the global bond index fell 16%.