With a week to go before the U.S. presidential election, markets fell on Monday as COVID-19 cases reached their highest level since the beginning of the outbreak.
It was reported that daily cases of COVID-19, rose to 83,000 over the weekend, passing the last record of roughly 77,300 cases seen in mid-July.
This along with the news that New home sales fell by 3.5% in September, saw indices fall across the board. As of writing the Dow Jones fell 2.69%, the S&P 500 had lost 2.15% and the NASDAQ dropped by over 2%.
DAX drops with Spain declaring “State of emergency”
European stocks also experienced sharp declines to start the week, as rumours grew that several countries on the continent may be set to impose nationwide lockdowns.
Spain, which was one of the most impacted nations during the peak of March/April, today declared a state of emergency, with the President stating, “The reality is that Europe and Spain are immersed in a second wave of the pandemic”.
At the close the DAX was down 3.71%, falling to its lowest level since July.
Oil stumbles, Libya increases supply
A recent truce signed in Libya, will put a halt to the country’s civil war, meaning that the country will now be in a position to ramp up oil supply.
This comes as Libya’s National Oil Corporation lifted restrictions from two key ports, announcing that output would increase from 500,000 barrels per day to 800,000 within the next few weeks and to 1 million bpd by the end of November.
News that oil supply will be increasing sent prices of WTI crude to its lowest since October 5th. Prices fell close to 3.3% today alone.
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Senior Market Analyst