Rise in COVID-19 Cases Cause Global Markets To Plummet Once More

Jun 24, 2020

Despite the first month of summer coming close to an end, the global tally of COVID-19 cases has crossed the 9 million mark with almost half a million lives lost due to the deadly virus. The most recent flares-ups have caused global markets to succumb; on June 24th, 2020 European markets declined as the Stoxx Europe 600 went down by 1.5%. The pandemic was not the only cause for European stocks to decline – tensions caused by trade hostility between Europe and the US due to Washington launching impending tariffs on European products encouraged investor hostility.

US stock futures did not have a pleasant day either and plummeted 0.8%. The Dow Jones futures declined 0.9% against its fair value while NASDAQ 100 and S&P500 declined 0.95% and 0.6% and vs. fair value, respectively. According to the Worldometer data tracker, the number of confirmed cases in the U.S jumped to 2.4 million on Tuesday. White House’s public-health expert, Dr. Anthony Fauci described the rise in cases as “disturbing,”

 

On 24th June, the USA reported 1,687 new COVID-19 cases amidst lockdown restrictions loosening nationwide.

The substantial jump of COVID-19 cases was particularly evident in Florida, Texas, and Arizona which were the first states to attempt to loosen lockdown restrictions and jump-start their economies.

Oil prices declined 1% on Tuesday, with Brent oil slipping 2% to $41.80 a barrel while WTI dropped 2% to $39.50.

In an attempt to restart their economies, many countries are loosening lockdown restrictions. Boris Johnson announced that the pubs, restaurants, and hotels are due to reopen in July, despite the 280 new cases registered on Tuesday. Hong Kong’s Hang Seng index declined by 0.5%, while China’s CSI 300 increased by 0.4%  and South Korea’s Kospi rose by 1.4%.