The Trader 

Market Outlook: Stocks extend last week's losses, BP, AstraZeneca & more

Market Outlook: Stocks extend last week's losses, BP, AstraZeneca & more

European stocks plunged and US futures tumbled on Monday as equity markets extended last week’s losses amid fears of a second wave to the pandemic. We are seeing pockets of cases in Beijing suddenly – the first in 50 days, whilst Alabama, Florida and South Carolina have reported record numbers of new cases for three days straight. The dreaded second wave will weigh on equity markets - it is already sparking a wave of selling – and force policymakers to chuck even more money at this. Markets just need to think things are heading in the right direction to go up; it’s the rate of change that matters, so fresh waves of cases are taken as a sell signal.  Equity markets had also clearly become overstretched and overbought. Remind yourself of Mark Robinson's recent thoughts on the rally and why last week Phil Oakley suggested that valuations were close to becoming detached from reality

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