Shares tumbled globally on Monday, with prices returning to last week’s lows as the spread of the deadly virus continues to have a big impact on market sentiment. Even though most markets tried to consolidate around major technical support zones last week after one of the steepest declines in decades, investors’ trading stance remains clearly bearish once again this week. The recent monetary and fiscal stimulus packages provided by central banks as well as nations around the globe didn’t have the expected impact on markets as most investors await reassuring data on the virus front. The fact the death toll continues to rise everywhere, with no peak in sight, is the main driving force sending markets lower at the moment. Investors remain very worried to see governments struggling, especially in Europe, to flatten the curve of Covid-19 cases even though a lag certainly exists between draconian measures being taken and actual daily data of new cases and deaths. Elsewhere, the fact the US Congress failed to agree on an aid plan didn’t assure markets and investors are now anticipating US GDP to shrink by a record 30% in Q2.
The worst performers on the Stoxx-600 so far is coming from companies like Linde, BASF and Air Liquide, who have all recorded sharp drops in their share price. The FTSE-100 Index is trading at the bottom of the table today with the price falling below 4,800pts early in the morning before registering a slight rebound to 5,000pts, which is the main resistance for the price at the moment.
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