Stock markets slide as Covid-19 cases rise

Stock markets slide as Covid-19 cases rise
  • Clock-gray 06:20
  • calendar-gray 27 October 2020

US stock markets suffered their sharpest drop in weeks as concerns about the economic impact of surging coronavirus cases sent shares tumbling, APA reports citing BBC.

The Dow Jones Industrial Average closed down 2.3%, after dropping more than 3% earlier in the day. The S&P 500 fell 1.8% and the Nasdaq 1.6%.

Stocks in Europe, where a rise in virus cases has prompted new restrictions, also declined.

Shares in travel and energy firms took some of the heaviest losses.

In the United States, cruise lines Royal Caribbean Group,Carnival and Norwegian all dropped more than 8%, while in the UK, British Airways owner IAG closed 7.6% lower.

Travel firms have been some of the most sensitive to warnings about the virus, which experts worry will intensify as winter approaches.

On Monday, Michael Ryan, an emergencies expert for the World Health Organization, said that Europe would need "much more comprehensive" measures to get the virus under control.

"Right now we're well behind this virus in Europe, so getting ahead of it is going to take some serious acceleration in what we do," he said.

On Monday, France's CAC 40 ended 1.9% lower, while Germany's Dax index dropped 3.7%. In the UK, the FTSE 100 fell nearly 1.2%.

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