There was no real let up for Europe on Wednesday morning, the mood soured by second wave fears and the confirmation of a recession in the UK.
The FTSE, which had crossed 6000 on Tuesday in no small part thanks to Rishi Sunak extending the furlough scheme, tumbled 65 points as the session progressed, returning the index to 5940. This as it was revealed the UK economy contracted by 2% in the first quarter – better than forecast, yes, but still bad, especially since it is merely the amuse bouche before Q2’s utter collapse.
Over in the Eurozone the region’s indices were worse off, in part because they are ahead of the UK with their lockdown-easing measures, and therefore are already seeing the potential threat of a 2nd wave of coronavirus cases. The DAX dropped 180 points to 10660, while the CAC slumped back under 4400 as it fell 1.9%.
The Dow Jones looks set to buck the day’s European trend for losses, if only because it suffered a hefty 450 plunge on Tuesday night after Dr Anthony Fauci – a key member of the USA’s coronavirus task force – warned of ‘serious consequences’ if the Senate reopens the country’s economy too soon.
Following that significant dive, the Dow is aiming to claw back a meagre 30 points when trading starts stateside, leaving it just under 23800.
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