In the US and Europe, Stock markets plunged as Coronavirus cases surge, efforts to contain Coronovirus is not going as planned.
The US reported 83,000 cases a record high on daily Covid-19 cases which surpassed the July peaks. Despite the insistence of the US president Donald Trump, that the country is “rounding the turn” on the virus.
David Kelly, The chief global strategist at JPMorgan Asset Management said “Nothing is to be gained by pretending that the pandemic and the economic pain it has caused are coming to a swift end”.
In Europe, after German blue chip stocks fell down the Stoxx 600 index lost 1.8%. In the US S&P 500 fell 1.9% to 3400.97 as the Dow Jones industrial average closed 2.3% down at 27685.38.
As the cases of Coronavirus in countries of Europe are increasing, the restrictions which was lifted by the government has been imposed again which is expected to limit the economic recovery.
There is a six month state of emergency declared in spain and new restrictions has been implemented by the UK government, over the weekend there was a record high surge in Coronavirus cases which was confirmed in france.
The benchmark Dax equity index dropped 3.7% which is German based. The business software company SAP, which fell by 23% after a warning that it would take a lot of time to recover from the pandemic than previously expected.
The recovery of Europe’s largest economy could be losing its momentum as the Germany’s ifo Business Climate Index slipped down low in six months.
The investors are anxiously awaiting the outcome of The US presidential election which will be held on November 3rd, as the outcome will result in new round of fiscal stimulus.
