Global Markets Mixed After Wall Street Slides

Investors have been encouraged by hopes for a coronavirus vaccine and central bank infusions of cash into struggling economies. But forecasters warn the rise in prices might be outrunning uncertain economic activity as case numbers rise in the United States and some other countries. Some are re-imposing anti-disease controls that disrupt business.

The question now is whether there will be a sustained unwinding in this forthy market, or if conviction about fresh central bank liquidity and fear of missing out kicks in once again, said Mizuho Bank in a report.

One possible sign the decline might be temporary: demand for government bonds and other assets considered safe havens in an extended down market has not come flooding back in,” Mizuho Bank said.

In early trading, the FTSE 100 in London rose 1.3% to 5,874.89 and Frankfurt’s DAX added 1.2% to 12,992.49. The CAC 40 in Paris was 1% higher at 5,016.76.