Arnab Das, Global Market Strategist at Invesco, is in conversation with CNBC-TV18 talked about the global markets and the second wave of infections. This second wave of infections and hence the lockdowns are worrying the markets.

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Das said, “It is concerning, also what is striking is that the approach in Europe is maybe quite a different than the approach in certain cases in US and in some emerging market countries. Europe is locking down at least regionally and the risk of national lockdowns in Europe is resurfacing.”

Talking about impact of second wave, he said, “Many small scale service sectors like tourism, hospitality, restaurants and bars and so forth are still not fully opened. Many that are opened are operating at a much lower capacity because of the social distancing than they were before. So the bounce back hasn’t been complete.”

“If we have regional or targeted lockdowns or lockdowns that are based on time as we have introduced here in United Kingdom, bars and pubs are closing much earlier than they used to in the past, well then there will be some downside in the recovery from that, but it won’t be nearly as extreme as during Q2 when there was a sudden comprehensive lockdown.”

“The two things are this is a drag on the recovery rather than outright double-dip, although the double-dip risk clearly has increased and then of course as I was saying before this differentiation that is likely to take place between parts of the world that are taking in different approach to managing resurgence in cases.”