Stocks retreat as fears grow of second coronavirus wave
Written by News on 24/06/2020
Stock markets around the world have retreated amid growing fears of a second wave of the coronavirus pandemic.
The blue-chip FTSE 100 closed down more than 3% and the domestically-focused FTSE 250 was down 2.8%.
A further 154 deaths in the UK were confirmed by the government on Wednesday, taking the total to more than 43,000, but some experts fear that the reopening pubs and restaurants as early as 4 July is a risky move.
In the US, all three main indexes were falling steadily in late morning trading – the S&P 500 down 3%, the Dow Jones losing almost 3.2% and the tech-rich Nasdaq down by 2.7%.
The S&P 500 and Dow Jones are 8% and 13% down from their respective February record closing highs.
It comes as the number of new coronavirus cases in the US hit their highest level in two months, with states including Arizona and Texas reporting record numbers.
The US’s top infectious disease expert Dr Anthony Fauci has warned that the next two weeks could be critical in the country’s efforts to contain the outbreak.
It also followed news from the International Monetary Fund that the pandemic is causing wider and deeper damage to the world’s economy than first thought.
The global body said advanced economies would be hit particularly hard, with US output forecast to shrink by 8%.
Among the fallers in the US on Wednesday were airlines, resorts and cruise companies – Royal Caribbean Cruises was down 9.5% and Norwegian Cruise Line Holdings falling 10.3%.
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Cruise company Carnival was down 9.3% after ratings agency Standard & Poors downgraded its bonds to junk status on forecasts for weak demand.
Elliot Savage, portfolio manager of the YCG Enhanced Fund, said: “People are feeling incrementally negative about new coronavirus cases both in the United States and the world. It’s the summer and in fall we have the flu and with the COVID-19 going on it’s a significant concern.”
Europe’s markets were also down – Germany’s DAX dropped 2.8%, Italy’s MIB fell by 3.4%, Spain’s IBEX was down 3.2% while France’s CAC 40 slid 2.3%.
(c) Sky News 2020: Stocks retreat as fears grow of second coronavirus wave
