European bourses are pointing to a mixed start as investors continue to weigh the reopening of economies against the prospect of a second wave of infections amid strained trade relations, but rebounding prices.
Whilst President Trump has shut the door to the renegotiation of the Phase One trade deal terms, China has banned imports of meat from Australia. Strained US – Sino and Sino – Australia relations are dragging on sentiment.
With Germany’s COVID-19 reproduction rate, R, now at 1.07, South Korea scrambling to control an outbreak linked to a nightclub in Seoul and China with its first infection in Wuhan since restrictions were lifted, investors are fretting over the possibility of a second wave of infections. That said, New York, the epicenter in the US is now ready to reopen. As an economic and financial hub, this carries some weight and helped pull the into a positive close on Monday.
The market has clawed back around 50% of March’s losses. Whilst economies are…