European stocks sink on second wave fears

European stocks sink on second wave fears

European shares sank Wednesday as infections soared in some U.S. states and second-wave fears rose globally.

Julian Satterthwaite reports

Fears of a second-wave crisis again giving investors the jitters on Wednesday (June 24).

Among the negatives, new data showing several U.S. states facing record infections.

The New York Times says the EU may now bar arrivals from the country, putting it in the same category as Russia and Brazil.

Though that didn’t stop Asian stocks edging higher, traders in Europe weren’t so sanguine.

Benchmark indexes there were all down over one percent from the open.

London’s FTSE the worst hit, down almost twice that much.

A day after Prime Minister Boris Johnson further relaxed lockdown rules, top medics warned that a second wave was a real risk.

Long-suffering travel stocks were again among the big decliners.

British Airways-owner IAG fell around 3.5%.

Air France was off as much as 4%.

Scandal-plagued payments firm Wirecard also fell.

Its shares dropped as much as 10% as former boss Markus Braun was released on bail.

The German company faces a probe into a 2.1 billion dollar hole in its accounts.

Shares in Swedish online gaming firm NetEnt surged around 30% though.

That on reports it faces a 2 billion dollar takeover bid from local rival Evolution Gaming.

Overall though the jittery mood saw a bid for traditional safe havens.

Gold rose as much as 0.3%.