ASX shares are currently suffering from uncertainty relating to Europe as COVID-19 cases surge across the UK and the EU.
What’s happening in Europe?
The UK’s chief scientific adviser, Sir Patrick Vallance, has provided a grim prediction that there could be 50,000 new daily cases of COVID-19 by the middle of October without further action, leading to hundreds of deaths per day.
On Monday there was over 4,000 new cases. All pubs, bars, restaurants and other hospitality venues in England must close by 10pm from Thursday. Scotland and Wales also face further restrictions.
There are new rules for European countries
like France and Spain with masks being a key part of the defence against the pandemic.
The share market fear is that further lockdowns across Europe would lead to a less economic activity and lower profits. Lower profits means lower business valuations.
Overnight the FTSE 250 Index, a measure of 250 UK shares, fell by around 4%.
Which ASX shares are suffering?
The ASX 200 share that is down the most this morning is Virgin Money UK CDI (ASX: VUK) which is down 7.5%.
Some gold miners are also being sold off. The Gold Road Resources Ltd (ASX: GOR) share price is down 4.9% and Northern Star Resources Ltd (ASX: NST) share price is down 4.75%.
The Corporate Travel Management Ltd (ASX: CTD) share price is down over 4%, as is the News Corp (ASX: NWS) share price.
At the opposite end of the ASX 200, the Collins Foods Ltd (ASX: CKF) share price is up more than 4%.
At times like this it makes me glad I have defensive ASX dividend shares in my portfolio like Washington H. Soul Pattinson and Co. Ltd (ASX: SOL).
