While several cities around the world including New York are slowly reopening, officials are warning of a new wave of infections

London (AFP) - Stock markets bounced back Friday from recent losses after a strong lead from Wall Street but an increase in global coronavirus infections fanned worries about a feared second wave, dealers said.

“Governments and central banks continue to shield equities from the bad news on fresh spikes in coronavirus and evidence of the economic damage wrought by the pandemic,” said Russ Mould, investment director at brokerage AJ Bell.

“That explains a strong end to the week for the FTSE 100 which is up more than one percent. The question is how long fiscal and monetary largesse can keep the rally going.

“The upcoming second quarter results season could result in a collision with reality as the impact of COVID-19 really hits corporate profits.”

- Concerns of new surge -

With several US states – particularly Texas, Florida and California – reporting a rebound in virus cases, there is an increasing sense that leaders will have to stall their economic reopenings and in some cases reimpose containment measures.

The World Health Organization meanwhile raised concerns of a new surge in Europe, where lockdown easing has seen flights between countries resume and bars, restaurants and cinemas reopen.

However, China, where the disease was first detected late last year, said it had controlled an outbreak in Beijing that had briefly raised fears of a second wave and prompted new restrictions.

While investors continued to see the positives, backed up by trillions of dollars in government support, analysts suggested the three-month rally in world equities could be stuttering.

On the downside in Asia, Hong Kong stocks fell 0.9 percent after the US Senate approved a bill that would lay out sanctions on Chinese officials who undermine the city’s autonomy as Beijing pushes forward with a controversial national security law.

The bill would allow sanctions against Chinese officials and the Hong Kong police, as well as banks that conduct “significant transactions” with them.

- UK retail in focus -

Back in London, fresh evidence emerged Friday of coronavirus winners and losers in Britain’s battered retail sector.

Supermarket king Tesco saw its share price rally 1.2 percent to 229 pence after logging bumper sales, as people switched to online grocery deliveries during the nationwide lockdown.

“The pandemic remains the central theme and Tesco has certainly stepped up to the plate in response,” commented Richard Hunter, Head of Markets at online brokerage Interactive Investor.

However, the sector remained pressured after British shopping centre giant Intu, already hit hard before the coronavirus lockdown, warned Friday that it was on the brink of collapse after talks failed to restructure its finances.

The debt-laden firm, which owns 17 giant shopping malls including MetroCentre and the Trafford Centre in northern England and Lakeside in the southeast, was seeking to progress talks with creditors before a midnight deadline.

- Key figures around 1100 GMT -

London - FTSE 100: UP 1.6 percent at 6,244.89 points

Frankfurt - DAX 30: UP 1.0 percent at 12,298.22

Paris - CAC 40: UP 1.5 percent at 4,993.82

Madrid - IBEX 35: UP 0.6 percent at 7,316.40

Milan - FTSE Mib: UP 1.2 percent at 19,465.42

EURO STOXX 50: UP 1.3 percent at 3,261.26

Tokyo - Nikkei 225: UP 1.1 percent at 22,512.08 (close)

Hong Kong - Hang Seng: DOWN 0.9 percent at 24,549.99 (close)

Shanghai - Composite: Closed for public holiday

New York - Dow: UP 1.2 percent at 25,745.60 (close)

West Texas Intermediate: UP 1.2 percent at $39.17 per barrel

Brent North Sea crude: UP 1.3 percent at $41.60 per barrel

Euro/dollar: UP at $1.1226 from $1.1218 at 2100 GMT

Dollar/yen: DOWN at 106.94 yen from 107.19 yen

Pound/dollar: DOWN at $1.2406 from $1.2419

Euro/pound: UP at 90.48 pence from 90.33 pence