European stock markets closed with falling quotes. The STOXX Europe 600 index of Western European companies fell by more than 4%, German DAX by 2.8%, French CAC-40 by 4.6%, and British FTSE by almost 4%.
Key indices of the New York Stock Exchange fell sharply on fears of market participants about the second wave of coronavirus. The Dow Jones Industrial Average has lost more than 7% — the worst day in the past three months. The S&P 500 index, which includes the 500 largest companies, collapsed by almost 6%. The Nasdaq Electronic Exchange Index fell more than 2%. Most declined quotes airlines, cruise companies and tour operators, as well as the energy sector. Market analysts said investor sentiment was affected by data on the growth of new cases of coronavirus infection in the states of Florida, Texas and California. On the eve of the US Federal Reserve said that the economic recovery will be long and even in the case of the second wave of the epidemic, quarantine cannot be reintroduced. Last week, another 1.5 million people applied to the labor exchange for unemployment benefits, despite the fact that the number of jobs in the country in May increased by 2.5 million. According to the Fed’s forecasts, US GDP this year will decrease by 6.5%, the unemployment rate will be 9.3%, now the figure is at 13.3%.
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