Oil prices & European stock markets slide amid Corona restrictions

Ascent Resources

Tighter restrictions across Europe led to stock markets opening significantly lower on Monday morning.

UK’s FTSE 100 index down 0.8% at 5,812, Germany’s Dax fell 2.7%, France’s CAC was down 1.3%, and Spain’s Ibex fell by 1.3%.

“Restrictions are continuing to tighten around the world, especially in Europe, where Spain just entered a state of emergency, and Italy has introduced its most severe measures since the end of its national lockdown in May,” said Connor Campbell from Spreadex, commenting on stock markets across Europe.

“And the pace of the virus is showing no signs of slowing down, with a new record number of daily cases in the US, and confirmation of 137 local cases in China,” he added.

Markets also fell in response to US stimulus talks – where an agreement has still not been reached.

“Time is fast running out, if it hasn’t already – why would either side want to get a deal done, especially blue wave-praying Democrats, when the country’s political landscape could’ve completely shifted in a week and a half’s time?” said Campbell.

In Asia, China’s SSE composite index fell 0.8% while Japan’s Nikkei was down by 0.1%.

The price of oil has also fallen. Brent crude 2.27%, to $40.82 a barrel whilst the price of US light crude fell 2.43% at $38.88 a barrel.

“Oil is under pressure on the back of concerns that supply from Libya will rise as rival factions have called a ceasefire and that should pave the way for an increase in output. The worries about rising coronavirus cases in Europe and the US has sparked demand concerns,” said David Madden, market analyst at CMC Markets UK.