* Asian stock markets: https://tmsnrt.rs/2zpUAr4
* Risk aversion resurfaces as virus concerns return
* Rising infections in India rattle energy markets
* Bond traders eagerly await 20-year Treasury auction
By Huw Jones
LONDON, April 21 (Reuters) - Global stocks gained on
Wednesday as early indications of a rebound in European
corporate earnings offset concerns over rising COVID-19
infections in Asia that have dampened oil prices.
The STOXX .STOXX index of 600 European shares was up 0.7%
at 436.76 points. Analysts said a 1.9% fall on Tuesday, its
worst session this year, was overdone and the benchmark remains
near its record high of 443.61 points hit on Monday.
MSCI's index of global shares .MIWD00000PUS fell 0.2%. It
too had reached record highs on Monday.
"We have seen seven weeks or so of gains predicated on the
recovery trade," said Michael Hewson, chief markets analyst at
CMC Markets.
"It was priced to perfection and with events in Japan and
India ahead of earnings, maybe there were going to be a few
potholes along the way, a little bit of risk correction," Hewson
said.
Recent optimism about rising vaccination rates in the United
States, Britain and the European Union is shifting to concern
that record coronavirus infections in India and a reinforcement
of travel restrictions will act as a brake on the world economy.
Stocks in Tokyo .N225 also slumped by 2% due to the
growing likelihood that Tokyo, Osaka and surrounding areas will
be put under lockdown due to a new wave of coronavirus
infections.
Europe kicked off an earnings season that is expected to
deliver 61% profit growth, its biggest surge in more than nine
years, on the back of recovery from economic lockdowns.
Tech stocks were the top gainers, up almost 2%, with
semiconductor equipment maker ASML ASML.AS jumping 5.4% after
it raised its full-year sales forecast, citing strong demand
amid a global computer chip shortage. But Italian football club Juventus JUVE.MI slumped 10%
after the breakaway European Super League was rocked by the
departure of its six English clubs. Crude futures extended declines from a one-month high on
speculation that coronavirus restrictions in India, the world's
third-largest oil importer, will hurt energy demand.
U.S. crude CLc1 dipped 0.4% to $62.44 a barrel, while
Brent crude LCOc1 fell 0.2% to $66.40 per barrel.
"Renewed concerns about the global economic recovery weighed
on commodity prices and commodity currencies. Many countries
around the world, such as India and Brazil, set new records for
infections and deaths," analysts at Commonwealth Bank of
Australia said in a research note.
Analysts said they were looking for steers from the European
Central Bank on Thursday, followed by the Federal Reserve and
Big Tech earnings on Wall Street next week.
NETFLIX SLUMP
S&P 500 e-mini stock futures EScv1 were slightly firmer,
indicating a potential modest rebound from Tuesday's selloff on
Wall Street.
The Dow Jones Industrial Average .DJI fell 0.75%, the S&P
500 .SPX lost 0.68%, and the Nasdaq Composite .IXIC fell
0.92% on Tuesday as investors sold airlines and travel-related
shares due to fear of a delayed recovery in global tourism.
Some tech shares and companies that benefited from
stay-at-home demand could face further pressure on Wednesday
after Netflix Inc NFLX.O reported disappointing subscriber
growth for its movie streaming service, which sent its shares
down 11% in after-hours trading. MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS fell 1.1%. Australian stocks .AXJO dropped
0.3% but shares in China .CSI300 recouped early losses and
rose 0.3% due to positive earnings from the healthcare and
banking sectors.
The dollar index =USD against a basket of six major
currencies traded 0.2% higher at 91.358.
Investors are closely watching an auction of 20-year U.S.
Treasuries later on Wednesday, which will be an important gauge
of global demand for fixed income.
Ahead of the auction results, the yield on benchmark 10-year
Treasury notes US10YT=RR traded at 1.5767%, near a six-week
low.
In a sign of growing risk aversion, spot gold XAU= traded
at $1,781.40 per ounce, close to a seven-week high reached on
Monday. GOL/
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