European markets whipsaw as a coronavirus second wave looms

European markets whipsaw as a coronavirus second wave looms

Over in the European markets, stocks whipsawed as the lifting of lockdowns continued while coronavirus second wave reports come in.

With the U.S. burying CDC recommendations to reopen some states, European investors continue to monitor the progress of the economy as the recent jobless claims report in the U.S. jumped over 20.5 million.

The pan-European Stoxx 600 slightly rose. Basic resources dropped 2.5% to lead losses, with most sectors and heavyweight companies ending in negative territory.

Spain’s IBEX is trading above 0.50%, while France’s CAC 40 is trading on negative territory. Meanwhile, Italy’s FTSE MIB slightly rose as well as Germany’s DAX, as of this writing. The U.K.’s FTSE 100 is currently trading over 21 points as of this writing.

Other European countries reopen their doors

Despite the fears of the second wave of coronavirus cases reported in some Asian countries, other nations are pushing through with the reopening of its economies.

A small portion of Spain has shifted into easing restrictions as small stores and restaurants begin to open and people are now allowed to sit outdoors. However, Madrid and Barcelona stay under lockdown.

In France, stores start to open this week as people are no longer required to present permits to travel. Schools and nurseries are also reopening.

Over in Germany, the cases have increased to above one for the past two days in a row, according to its center for disease control, the Robert Koch Institute (RKI).

Boris Johnson lays out a ‘conditional’ plan to reopen its economy

In the U.K., Prime Minister Boris Johnson has taken tentative steps to ease its lockdown measures.

One of the contents of the 50-page government document proposed by the British government said that “people should aim to wear a face-covering in enclosed spaces where social distancing is not always possible.”

Furthermore, the British government notes this as a recommendation rather than a rule, and people won’t get penalized for not wearing a mask. In case there are no spikes in infections in the next couple of days, schools and non-essential shops may reopen by June.

In the third stage of reopening estimated by July, the U.K. might see the gradual reopening of cafes, restaurants, pubs, and other businesses.

Johnson further adds that the government is ready to reimpose controls in case a second wave resurfaces in the country.

The U.K. cases hit 224,332 as per Johns Hopkins University data. The current numbers are also close to Italy and Spain.

As the European markets try to jumpstart their economy, and with the recent news that big investors are looking into other opportunities, it seems that the second wave of coronavirus cases doesn’t seem to bother most of the region.

Featured image courtesy of jewhisperer/Pixabay

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