Financial markets fall due to concerns about a new wave of coronavirus

Investors fear that governments will start tightening quarantine measures again.

Financial markets on Monday showed a decline due to investor concern about reports of repeated outbreaks of coronavirus, which may lead to a slowdown or cancellation of the lifting of the quarantine.

The day started with positive dynamics in Asia, where further easing of quarantine measures is observed: in New Zealand, some restrictions will be lifted from Thursday, and in Japan, they plan to raise the state of emergency in regions where the situation has stabilized.

France, which had one of the strictest quarantine regimes in Europe, began gradually easing it on Monday. The UK on Sunday also presented a plan for a phased exit from the quarantine.
Meanwhile, South Korea warns of a second wave of the virus: the number of infections in the country has reached a monthly high. The growth in the name of new cases has accelerated in Germany, where restrictions have already started to be relaxed.

A new wave of infections will have a very negative impact on investor sentiment if governments start to tighten quarantine measures again.

The European Euro STOXX 600 index fell 0.87 percent, the German DAX fell 0.78 percent, and the British FTSE 100 fell 0.36 percent. Shares of energy and tourism companies were the most affected.

On Wall Street, it seems, a decline is also expected: e-Mini s&P 500 futures fell almost 1 percent.

The MSCI international index, covering 49 countries, fell 0.15 percent.

The bond market seems to believe that the economic recovery will be slow: two-year us government bonds hit a record low of 0.105 percent, and Federal funds rate futures last week went into negative territory for the first time in history.

The dollar rose 0.3 percent against a basket of foreign currencies on Monday, while the Japanese yen strengthened to 107.23.

The Euro fell 0.2 percent to $ 1.0827, and the pound fell 0.9 percent to $ 1.23.

Brent crude fell $ 1.11, or 3.6 percent, to $ 29.86 a barrel, while West Texas Intermediate fell 92 cents, or 3.7 percent, to $ 23.82 a barrel.

The price of gold rose to $ 1,700 per ounce. Gold, considered a safe asset, has grown by 12 percent since the beginning of the year, reaching the highest levels in seven and a half years.

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