International inventory market values are taking a recent hit on mounting fears a ‘second wave’ of coronavirus infections will wreak additional injury on the worldwide economic system.
The FTSE 100 plunged beneath the 6,000 factors barrier early on Monday after steep falls throughout many indices in Asia.
Market analysts cited a brand new flight from danger after it emerged over the weekend that authorities in China had closed a preferred meals market in Beijing following a spike in COVID-19 instances.
The revelation constructed on investor worries final week about an infection numbers in the USA – the world’s largest economic system forward of China.
Michael McCarthy, chief market strategist at CMC Markets, stated in a observe: “Reviews of a brand new COVID-19 lockdown in Beijing converse on to market fears that the measures taken to include the virus up to now are usually not sufficient.”
Japan’s Nikkei was 3% down whereas all the foremost inventory markets in Europe registered losses on the open.
The FTSE fell greater than 2% in a broad-based sell-off – taking the index beneath 6,000 factors.
It had misplaced a 3rd of its worth on the peak of the panic however had recovered forward of Monday’s opening to the extent it was 19% down within the yr up to now.
US futures instructed Wall Avenue was on monitor to really feel the ache with the S&P 500 forecast to open 2% decrease.