Markets mixed amid renewed COVID-19 fears

Markets were mixed on Monday.

The S&P 500 was flat, the STOXX Europe 600 fell 0.4 percent and the Nikkei 225 rose 1.0 percent.

After a rally driven by hopes of economies reopening with the relaxation of restrictions imposed to curb the spread of COVID-19, investors turned cautious amid reports that some countries like Germany and South Korea are seeing an acceleration of new infections after easing restrictions.

Russ Mould, investment director at AJ Bell, said markets were realising that “the V-shaped recovery will not be as fast as expected”.

“I think it’s pretty clear that if you open too fast, it’s going to have significant consequences,” said Michael Yoshikami, founder and CEO of Destination Wealth Management.

While many are calling the resurgence in cases a second wave, Jung Eun-Kyeong, director-general of South Korea's Centers for Disease Control and Prevention, said that this is not correct as the “first wave has not ended”.

Jung said that the second wave will come in autumn or winter.