Stocks fall on fears of second coronavirus wave

Global stocks and oil prices dropped on Wednesday as markets feared a possible second wave of coronavirus infections.

MSCI’s index of global shares fell 0.3%, while the pan-European STOXX 600 index slid 1.6%.

Deutsche Bank shares plunged 4.4%. German bank Commerzbank and ABN Amro Netherlands also slumped after reporting their first-quarter losses.

MSCI’s broadest index of Asia-Pacific shares outside Japan gained 0.3%. S&P 500 e-mini futures fell 0.2%.

Treasury yields slid ahead of Fed Chairman Jerome Powell’s speech, intensifying speculations that the United States could adopt negative interest rates in the future.

On Tuesday, President Trump pushed the Federal Reserve to adopt negative rates. This remains a controversial topic in the financial markets after U.S. money markets hinted at possible rates below zero.

U.S. 10-year Treasury yield stood at 0.6606%. Two-year yield traded at 0.1629%.