European stocks slipped on Tuesday, reversing the previous day’s gains on worries about the state of California shutting down due to rising coronavirus cases.
After the 1% gain on Monday, the Stoxx Europe 600 SXXP,
On Monday, California Gov. Gavin Newsom ordered indoor operations shut at restaurants, bars and museums, as the Los Angeles and San Diego school districts said classes in the fall would only be online, news that contributed to a big pullback on Wall Street, for tech stocks in particular.
“Investor risk appetite appeared healthy through most of the first session of a week that is about to get much busier with economic data releases and company updates. However the mood shifted abruptly late in the U.S. trading session, with some of the recent momentum winners slamming sharply into reverse,” said Ian Williams, a strategist at Peel Hunt.
In China, export volumes rose in June, a sign of the recovery in the global economy.
In the U.K., however, gross domestic product edged up just 1.8% in May, leaving the British economy about 25% worse than February, before the country locked down.
Geopolitical tension also was in the air after the U.S. rejected maritime claims made by China in the South China Sea and separately sanctioned aerospace and defense company Lockheed Martin.
After the 0.9% drop for the S&P 500 SPX,