Fundamental Comment

European stocks fall amid fears of pandemic second wave

European stocks fall amid fears of pandemic second wave

European stock indexes fell on Monday’s trading, amid concerns about a second wave of coronavirus caused by the easing of closure measures.

At press time, the Euro Stoxx 50 index slumped 1.24 percent to trade near 3,114.55 points.

German DAX 30 index descended by 1.20 percent and now settles near 11,819.27 points, while French CAC 40 reached 4,786.90 points, down 1.08 percent.

Britain’s FTSE 100 Index slumped to 6,031.78 points, bringing its slump today to about 1.2 percent.

European stock losses coincide with sharp declines in Asian equities and US stock futures, as concerns about a second wave of Corona cases dominate market sentiment.

The sharp declines came after US states, including Alabama, California, Florida and North Carolina, reported a rise in daily cases of Covid-19, while Texas and North Carolina also reported a record number of hospital admissions due to the Coronavirus.

Protests against racism, which began after the death of George Floyd, continued at the Minneapolis Police Department last month.

Back in Europe, attention is shifting to travel restrictions among most European countries that will be lifted from today, while in the UK, non-core stores will be allowed to reopen with social spacing orders in mind.

On the other hand, oil prices also fell on Monday trading, as uncertainty renewed about a recovery in demand amid a new increase in corona epidemic cases.

At press time, West Texas Intermediate (WTI) crude futures traded at $35.52 per barrel, while the lowest level recorded during the session was at $34.36.

Brent crude reached $38.27 a barrel, while the lowest level recorded during the session was at $37.24, surging by about 1.29 percent.

The drop in the price of oil comes at the forehand's increase in corona cases in China and the United States, as renewed outbreaks of the epidemic may strain recovery in fuel demand.

Over the weekend, about 25,000 Americans were reported to be infected as more States reopened.

Black gold continued its losses last week, the first in nearly seven weeks since last April.

Investors are waiting for the OPEC's monthly report to be released later this week, and an OPEC-led panel will meet on Thursday.

Meanwhile, the dollar index, which measures the performance of six major currencies against the US dollar, traded lower at 97.19, while the lowest level recorded during the session was at 97.02.

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