Europe open: Stocks trade mixed as investors debate outlook for market rally
Stocks are trading in mixed fashion as investors and analysts scrutinise moves by governments across the Continent to ease lockdown measures across the Continent.
Meanwhile, some investors and media were debating the sustainability of the recent rally in stockmarkets worldwide.
On that note, commenting on recent gains in risk markets, Michael Hewson, chief market analyst at CMC Markets UK, said: "While this might be entirely understandable under normal circumstances, the current situation is anything but.
"This suggests that the rise we are seeing in stock markets seems somewhat optimistic and to some extent a little unrealistic."
Strategists at Morgan Stanley were less downbeat, writing at the weekend: "Speaking of negativity, doubts about the risk market rally remain entrenched. Our advice? Don't be so negative, stay positioned for risk on."
Against that backdrop, as of 1100 GMT, the German Dax had surrendered early gains and was trading 0.43% lower to 10,857.38, alongside a 0.98% fall for the French Cac-40 to 4,504.98, although the FTSE Mibtel was managing to keep its head above water, rising by 0.10% to 17,456.12.
Travel&Leisure issues were among the main laggards, with the Stoxx 600 sector sub-index trading down by 1.62% to 164.99 after the UK Prime Minister floated the idea of 14-day quarantines for travellers to the UK.
But there was some good news to be had on the pandemic front, with the likes of Spain reporting the least number of new infections and fatalities, of 373 and 123, respectively, since reaching its peak in the pandemic at the start of April.
Also on Sunday, the head of the European Commission, Ursula Von der Leyen reportedly broached the possibility of sanctioning Germany after its constitutional court encroached on European tribunals' jurisdiction with its ruling against aspects of the European Central Bank's bond buying programmes.
Further south, the latest data out of Italy revealed the extent of the havoc from the lockdown measures implemented to block the pandemic's advance.
According to ISTAT, industrial production in the Mediterranean country collapsed by 28.4% in March month-on-month, led by a 39.9% drop in output of capital goods.