European rally simmers down
European stocks remained mostly flat on May 20, following a downturn on Wall Street. The earlier optimism on the markets has been cut short by criticism of the coronavirus vaccine tests.
STOXX 600 dipped down briefly, yet the boost of the healthcare sector negated these losses.
Wall Street lost 1% overnight, following a skeptical report on the coronavirus vaccine, published on the healthcare news media STAT. The report claims, that the results of the first test are not detailed enough and are not adequate proof of vaccine efficiency. The criticism has driven the investors back to safe-haven assets.
The general recovery of the stock markets around the world from the March crash has slowed down. The STOXX 600 lost 0.5% in May, after gaining 6%. Experts believe, that investors are reducing their activity and are waiting for new developments.
Nevertheless, the European markets have seen a wave of cautious optimism, caused by the joint proposal of Germany and France for the EU recovery. The new fund worth 500 billion euros aims to help the countries the most impacted by the coronavirus.