Financial markets are on the decline on Monday due to investors worrying about reports of repeated outbreaks of coronavirus that could slow down or cancel quarantine removal.
The day began with positive dynamics in Asia, where further relaxation of quarantine measures is observed: in New Zealand, some restrictions will be lifted from Thursday, and in Japan they plan to lift the state of emergency in regions where the situation has stabilized.
France, where one of the toughest quarantine regimes in Europe operated, on Monday began to gradually weaken it. The United Kingdom on Sunday also introduced a phased quarantine plan.
Meanwhile, South Korea warns of a second wave of the virus: the number of infections in the country has reached a monthly maximum. The growth in the number of new cases has accelerated in Germany, where restrictions have already begun to soften.
A new wave of infections will negatively affect investor sentiment if governments begin to tighten quarantine measures again.
The European Euro STOXX 600 index fell 0.87 percent, the German DAX – 0.78 percent, and the British FTSE 100 – 0.36 percent. Most affected shares of energy and tourism companies.
On Wall Street, it seems, a recession is also expected: e-Mini S&P 500 futures are down almost 1 percent.
The international MSCI index, covering 49 countries, fell 0.15 percent.
The bond market seems to believe that economic recovery will be slow: US government two-year bonds reached a record low of 0.105 percent, and federal fund rate futures last week for the first time in history went negative.
The dollar against a basket of foreign currencies on Monday rose by 0.3 percent, and against the Japanese yen appreciated to 107.23.
The euro fell 0.2 percent to $ 1.0827, and the pound – 0.9 percent to $ 1.23.
Brent crude fell $ 1.11, or 3.6 percent, to $ 29.86 a barrel, while Texas West Texas Intermediate fell 92 cents, or 3.7 percent, to $ 23.82 a barrel.
The price of gold rose to $ 1,700 an ounce. Gold, considered a safe asset, has grown 12 percent since the start of the year, peaking at seven and a half years.