Stock markets and oil prices slide due to fear of second wave of Coronavirus

Washington: William Schaffner, a senior medical researcher from the United States, warned that the Second wave of Coronavirus has begun. The warning issued by Schaffner becomes significant because of the number of Coronavirus cases rising once again in leading countries like China and the United States. Indications are that the second wave of Coronavirus will once again deliver a blow to the global economy. At the same time, there is already a decline in the stock markets and oil rates.

The lockdown imposed in the United States to contain the Coronavirus has been lifted. Factories, malls, educational institutions and even public functions, are slowly being given permissions to start with the view to provide an impetus to the economy. While this process is still in the preliminary stage, there are reports of Coronavirus cases increasing in big numbers. Drawing attention to this, US medical researcher William Schaffner warned that the second wave of Coronavirus has already begun.

Schaffner warned ‘The second wave of Coronavirus pandemic has already begun. We have initiated steps to normalise social life in the country. The public is still not following regulations regarding social distancing and masks etc. People are not taking proper precautions, and there is a threat of Coronavirus spreading rapidly once again.’ Statistics endorsing the claims made by Schaffner are emerging from both the United States as well as China.

Over the last three days, 80 new cases of Coronavirus have been reported from the Chinese capital of Beijing. Lockdown has, once again, been imposed in some parts of the Chinese capital and the local health agency informed that testing of more than 40,000 people has started. Other than Beijing, new cases are being reported from Wuhan, which is the origin of the pandemic, and other Chinese cities. This confirms that the second wave of Coronavirus has entered China.

Even in the United States, the number of Coronavirus cases is consistently increasing. More than 20,000 cases have been reported for three successive days, on 12th,13th, 14th June. A large number of cases are being reported from 10 US states, including the leading states of Texas, Florida and California. As per the information published on Sunday, the number of Coronavirus cases in the United States has reached 2,150,000.

The repercussions of the second wave of Coronavirus in the United States and China are being felt in the global economy. A major crash was reported from the stock markets in Europe and Asia along with the United States. The main US stock index, Dow Jones, crashed by a whopping 700 points. Major markets in Europe have declined by 1% to 1.5% and the Asian markets too have taken a big hit. The South Korean stock market slumped by nearly 5%, and the Japanese stock index reported a drop of 3.5%. The stock indices in China, Hong Kong and India too were severely jolted.

Following the stock market, the oil sector also has shown a decline. US crude dropped by 4% declining to USD 34.75 per barrel. Whereas, the crude prices declined even in the international markets by nearly 2.5%, settling at USD 37.75. Experts have warned that the global oil demand continues to remain low and therefore, the oil prices may decline further in the time to come.