European stocks drop 5-week low on coronavirus second wave fears

European stocks fell on Tuesday, to deepen losses for the second straight day and hit a 5-week low, due to investors' risk-aversion and the gloomy global economic outlook, after the second wave of coronavirus infections spiked in most parts of the world.

The Stoxx Europe 600 index fell 0.8% as of 10:45 GMT, and hit the lowest since last September 25 at 352.89 points, after it closed lower by 1.8% yesterday.

The pan European index opened lower today, to deepen losses for the second straight day and hit a 5-week low, with most of the major European markets and sectors seeing red today.

The retail sector saw the largest losses in Europe today, dropping over 1.5%, due to lower-than-expected Q3 business results by many major companies.

The second wave of Covid-19 infections is sparked in most parts of the world, especially in Europe, with record daily increases of cases in France, and a spike of infections in Italy, Spain, Germany, and the UK, in addition to the US and Russia.

The British government is preparing to impose the highest health alert in more cities, and German Chancellor Angela Merkel has warned that the government is about to lose control of the virus.

S&P 500 futures rose over 0.4%, after closing lower by 1.9% yesterday at Wall Street, posting the first loss in three days.

Back to Europe, the Euro Stoxx 50 index fell more than 0.9%, France's CAC 40 fell 1.1%, Germany's DAX fell 0.4%, and the UK's FTSE 100 lost 0.1%.