Global markets cracked on Thursday as a rise in COVID cases led to a second wave of lockdowns and restrictions across Europe, and there were concerns about the stalemate over the fiscal stimulus in the US.

“In the US cases are rising in 46 states, governments and local authorities are putting in a lot more restrictions,” Gavin Friend, senior market strategist at National Australia Bank said in an interview with CNBC-TV18.

“Most of the north of the UK is already in lockdown and London will enter a new higher stage of restrictions from midnight Friday. The read through the markets is just a matter of time before we get crimps on movements and therefore crimps on economic activity,” he said.

“We need to focus on two things -one how does this virus situation develop, what sort of hit it is going to take on economies so we may have to wait and then we need to look at the poll in the US because we are getting very closed to the November 3 election.”

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