Equity markets have come under pressure again as a spike in new Covid cases across the US has investors worried, whilst the IMF drastically cut its growth forecasts for the year. Major equity indices have retreated towards the lower end of the range traded in June but have yet to make fresh lows for the month – when they do it will get very interesting and could call for another leg lower. Stocks in Europe were down 3 per cent on Wednesday, whilst Wall Street dropped 2.6 per cent. European markets opened lower again Thursday, with a risk-off trade seeing all sectors in the red at the open and telcos, healthcare and utilities declining the least. By 9am the major indices had pulled off the lows and the DAX was a shade positive.
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