Stocks trying to rally after sell-off on Thursday

Stocks trying to rally after sell-off on Thursday

This morning, UK and European stocks are attempting to recover some of yesterday’s sell-off. Markets fell on Thursday on rising concerns over the spread of the delta variant of coronavirus and its impact on global economic recovery.

News that Pfizer and BioNTech are working on a Covid-19 booster jab targeting the delta variant may help sentiment at the end of the week. Investors are also concerned that long-term Treasury yields have been falling fast this week with the US 10-year Treasury yield currently at its lowest since February.

Data from the ONS released earlier today showed that the UK economy grew 3.6% in the three months to May. That’s the strongest growth since November but less than forecasted. Jonathan Athow, ONS Deputy National Statistician for Economic Statistics, said “The economy grew for the fourth consecutive month, albeit at a slower pace than seen recently, but remains around three percent below its pre-pandemic peak”.

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