Global stocks wobbled on Monday as markets were nagged by fears that rising coronavirus cases in the US and China would thwart efforts to kick-start the world’s two biggest economies.

Shares on Wall Street suffered early sharp declines but the S&P 500 index had clawed back to be flat at lunchtime in New York. In Europe the Stoxx Europe 600 benchmark fell 0.3 per cent and the FTSE 100 lost 0.7 per cent.

The surge of infections in some cities has divided investors. “Our view is that this sell-off won’t last, and that most risky assets will make more headway this year, as economies continue to recover from their lockdown-induced slumps,” said Simona Gambarini, an economist at Capital Economics in London. “Crucially, though, this view is conditional to the outbreaks remaining localised, and renewed lockdowns not becoming widespread.”