Second wave of COVID-19 struck the stock market like a storm across Europe

Restrictions imposed across Europe in the wake of the second wave of the corona virus caused the stock market to fall. Investors are worried about the progress of the Brexit talks, in addition to the COVID-19 financial collapse.

In London, the Financial Times Stock Exchange 100 Index (Ftse 100) ended 1.7% lower, while Frankfurt’s Dax and the French stock market index, Cac 40 closed about 2.5% lower. 

Across Europe, airline shares ended much lower amid restrictions in cities, including Paris and London. Ryanair shed 4% and IAG, the owner of Aer Lingus, British Airways, and Iberia, ended 2.5% lower.

In Ireland, shares of ICG, the owner of Irish Ferries, fell more than 1%. Dalata Hotel ended down 1%.

Joshua Mahony, senior market analyst at online broker IG said that: “Market sentiment continues to sour as a London lockdown poured fuel to the fire for coronavirus concerns.”

“The decision to push London onto a phase two stage does little to help boost confidence in the outlook of the UK economic hub.” Mr. Joshua added that without the gain of economic assistance associated with a level three lockdown, the level two restrictions carry much downside.

Ken Berman, chief strategist with Gorilla Trades said that, “if we do have another surge in cases, and there have to be curbs put into place here and containment in the US, obviously it’s going to hurt the economy.”

Wall Street shares plummeted on the back of an unexpected rise in weekly unemployment claims. This was due to Treasury Secretary Steven Mnuchin shattering hopes of getting more funding before the election.

The manufacturing activity in New York State fell more than expected in October.