GLOBAL STOCK MARKETS GO SOUTH ON FEARS OF NEW COVID 19 WAVE
Stock markets retreated on Monday, May 11, as a spike in new COVID-19 cases flattened expectations of steady advance against the pandemic, with European shares diving and oil prices dipping and energy and travel stocks retreating, writes Tommy Wilkes of Reuters.
Shares had initially gained, led by Asia, as markets welcomed loosening in COVID-19 restrictions in New Zealand and Japan even as will ease some curbs from Thursday but South Korea warned of a second wave of the virus as infections soared to a month-high record and new cases materialized in Germany, which is bent on easing restrictions.
“If we do have a second wave and lockdowns, that’s almost the worst outcome from an economic perspective,” said Guy Miller, chief market strategist at Zurich Insurance Co. Miller said that would “postpone business investment indefinitely” and see consumers retrench as hopes for a quick economic recovery were dashed.
Wilkes quoted Miller as saying that the next two or three weeks would be “pivotal” in demonstrating how businesses and consumers would respond to the loosening of lockdown measures. #coronavirusimpact #COVID19