WHO says COVID-19 in “new and dangerous phase” amid market optimism

Markets were mixed on Friday.

The Nikkei 225 rose 0.6 percent and the STOXX Europe 600 rose 0.6 percent but the S&P 500 gave up early gains to fall 0.6 percent.

An announcement by Apple that it would re-close 11 stores in Florida, the Carolinas and Arizona starting on Saturday triggered a reversal in US stocks as it re-ignited fears of the COVID-19 pandemic.

Also on Friday, the World Health Organization reported that there had been 150,000 new COVID-19 cases on Thursday, the highest in a single day.

“The world is in a new and dangerous phase,” said Director General Tedros Adhanom Ghebreyesus. “The virus is still spreading fast, it is still deadly, and most people are still susceptible.”

Joe Saluzzi, co-manager of trading at Themis Trading, said that the market has been reacting to the news on the pandemic and that “we are going to be stuck here for a while until there’s clarity on the virus, and that could take months”.

Still, Mike Loewengart, managing director at E-Trade Financial Corp, said that “optimism around reopenings could fuel a comeback” in sectors like energy and consumer discretionary.

Vishnu Varathan, head of economics and strategy at Mizuho Bank, was also optimistic in a note. “Simply put, markets view pandemic risks as passé, relegating them to the backseat (and rear-view mirror) as they look for an upturn ahead.”