EU Stocks Slide on Virus Fears

Following last week’s positivity, investors have now taken a cautious approach, as the ever-rising coronavirus infection numbers seem to indicate a high second wave possibility.

DAX futures have traded 0.8% lower, France’s CAC have fallen 0.8%, while FTSE 100 futures have contracted 0.5%.

Indeed, for good reason. WHO has reported 190,000 news cases for the 24-hour period through early Sunday, meaning that the total number of cases has now topped the 10 million mark. Out of the 10 million global cases, US has registered a quarter, which causes investor concern. A second-wave-pandemic-struck US could severely threaten the global economic recovery everyone so greatly hopes for.

When it comes to EU recovery plans, Angela Merkel is set to host French President Emmanuel Macron today, with the two leaders likely to discuss what strategy to employ to get agreement on the recovery fund for the region.

The EU-UK free trade negotiations are also on the agenda to restart this week in Brussels, with little signs of agreement to be reached so far, but hopes for resolution looming.

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