Europe is facing a second wave of coronavirus infections that could shake up the economy again. In the second quarter, the decline was more than 11%, and forecasts for the second half of the year until recently were positive. Now, unfortunately, these good expectations are being called into question, amid many new cases, the announcement of new restrictive measures by many governments and the delay in opening businesses. Little by little, Western Europe has started closing whole cities again, and many small local businesses may have to declare bankruptcy. Such restrictions sparked a sell-off in European stocks earlier this week.
ING economists warn that the chances of European markets finding themselves in a “double bottom” situation in the fourth quarter have increased significantly. The performance of the indices in the last 2 weeks shows that the economic recovery has started at a loss. The restrictions have already sparked strong stock sales earlier this week. The new measures will have the most devastating effect on the services sector, weakening trade in the coming months.
Junior Trader Kameliya Ivanova