Many countries have restarted economic activity after the pandemic's apparent health setback. Today, after a period of slowing the spread of the coronavirus, the number of new cases of infection is on the rise. According to some analysts, the deconfinement is very early and all the economic actors fear a new wave of the epidemic. The main financial markets are naturally impacted, but negatively. This Thursday, the main stock exchanges on the European continent opened the session in the red due to doubts in the markets. In Paris, the CAC 40 dropped 0.8% to 4,832.64 points (08H00 GMT), the FTSE 100 dropped 1.1% in London and the Dax lost 0.23% in Frankfurt. The EuroStoxx 50 fell by 0.67%, the Stoxx 600 by 0.58% and the FTSEurofirst 300 by 0.73%. These figures lead investors to fear a slowdown in the recovery.
In the United States, some states have reported record numbers of new Covid-19 contaminations. These include South Carolina, Florida and Oklahoma. In 24 hours, the United States has seen more than 36,000 additional cases. This is not far from the peak recorded at the end of April (36,426). Fears have been rekindled by the decision of some governors to quarantine travelers from nine other states.
This decision was taken by the governors of Connecticut, New Jersey and New York. In addition, Walt Disney in California has delayed the reopening of hotels and some theme parks. In addition, the digital giant Apple has decided to close its stores. According to Avatrade's chief analyst, Naeem Aslam, investors are doing everything to avoid risky assets.
Note: The analyst noted that Wall Street is waiting for good news about covid-19 vaccine research. At the same time, he notes that the topic of tensions between Europe and the United States is also back in the news. However, investors will be watching the ECB's monetary policy meeting as well as US GDP and employment figures.
In terms of stocks, the various European sectors are experiencing a decline in equities as they did the day before. Of course, the tourism and transport sector shows the largest decline (-1.47%). It is closely followed by the energy sector, which drops by 1.14%. The banking sector is down 0.72%. In the United Kingdom, EasyJet abandons 6.73% with the raising of 419 million pounds sterling via an equity placement. The latter is made in response to the pandemic.
On the other hand, the airline Lufthansa is up with a 12.86% rebound following a major decision. Indeed, the businessman Hermann Thiele announced the approval of the 9 billion support programme that the airline group has negotiated. Similarly, the day after the publication of an out-of-court settlement in the Roundup case (USA), Bayer took 0.77%. More than 100,000 plaintiffs will be compensated by this agreement.