TOKYO (AP) — European benchmarks rose Tuesday but Asian shares mostly declined following a retreat on Wall Street.
France’s CAC 40 added 0.6% in early trading to 7,160.56, while Germany’s DAX added 0.7% to 15,882.28. Britain’s FTSE 100 rose 0.4% to 7,474.60. U.S. shares were set to drift higher with Dow futures inching up less than 0.1% to 35,965.00. S&P 500 futures rose nearly 0.1% to 4,664.50.
Investors are keeping an eye on rising numbers of coronavirus cases, especially in China, where a third city has locked down its residents because of a COVID-19 outbreak, raising the number confined to their homes to about 20 million people.
“In China, upward momentum quickly faded and reversed as COVID-19 restrictions were tightened once again in some Chinese cities,” said Jeffrey Halley, senior market analyst at Oanda.
Such disruptions can have regionwide implications for trade and other activity. Major companies, including automakers such as Toyota, had been counting on a recovery in the supply of semiconductor chips and other products from China and the rest of Asia, as vaccinations and other coronavirus prevention efforts has advanced. The recent surge in infections by the omicron variant of coronavirus has shaken such hopes.