Stocks fall on new Covid-19 outbreak fears, as shops in England reopen - as it happened

Global stocks fall as investors fear that a fresh wave of Covid-19 may be on the horizon, just as lockdowns start to ease

• How high street shops in England plan to trade from Monday
• Wardens hired to police crowds as high streets in England reopen
• Coronavirus - latest updates
• See all our coronavirus coverage

3.06pm BST

2.49pm BST

A UK-EU statement being reported by Reuters seems to be solidifying the fact that no extension will be sought for the Brexit transition period.

The statement notes that the UK has decided not to request any extension and that the transition period will therefore end on 31 December in line with the withdrawal agreement.

2.33pm BST

Investors have also started to pull out of US stocks, sending major indices into the red at start of trading.

2.07pm BST

A glimpse of London's west end shopping scene from Bloomberg's Deirdre Hipwell.

(Worth a watch, if only for the opening dance clip)

My Bloomberg QuickTake debut scoping out the scene in London's west end as non essential retail reopens in England... https://t.co/rdfzG17AGk

1.43pm BST

Birmingham shoppers returned to the high street with many in the rest of England on Monday, as queues formed at non-essential" retail names such as Zara, H&M, Sports Direct and Primark, our retail correspondent Sarah Butler writes.

But any retailer hoping for a Christmas-style frenzy would have been disappointed. New Street station was quiet and shoppers said they had no trouble finding a parking spot.

Related: 'A bit of normality': Birmingham shoppers return to high street stores

1.37pm BST

We've seen some paring of losses across major European stock markets.

1.21pm BST

Boris Johnson's spokesman has said a comprehensive review of the 2-metre physical distancing rule will be completed in the coming weeks, according to Reuters.

The spokesman added that the prime minister will try to give as much notice as possible to the hospitality sector on re-opening plans.

12.47pm BST

Curious what people are buying in shops today?

Here's a glimpse of what is popular at John Lewis, according to Mirror's business editor:

Top sellers in the first two hours at John Lewis Kingston?
Buttons!
Top five
1. Buttons
2. British Fashion Council face coverings
3. Egg cups
4. China sets
5. Baby sleepsuits

A whole different set of must-haves at John Lewis Poole this morning. Top sellers in the first couple of hours:
1. Towels
2. Sofas (how many sofas can you sell in two hours!?)
3. Pillowcases and bed sheets
4. Televisions
5. Printer cartridges

12.40pm BST

Nationwide is approaching around 200 staff with potential redundancy offers, as it tries to weather the pandemic and lower-than-expected interest rates.

The building society is hoping that around 100 of those workers end up accepting the offers.

We have made a commitment that there will be no compulsory redundancies this year.

However, as a result of the low interest rate environment and the impact of Covid, it is only right that we continually review staffing levels to ensure we run the society efficiently.

12.01pm BST

Travis Perkins, the builders' merchant, is cutting 2,500 jobs in the UK, almost a tenth of its workforce, and closing 165 stores as it expects weaker demand for materials in the next two years in the wake of the Covid-19 pandemic.

Travis Perkins has started a consultation of its staff on the job cuts and the branch closures, which will reduce its network by 8%. The job losses will also affect non-store roles in distribution, administrative and sales, and reduce its 30,000-strong workforce by 9%.

While we have experienced improving trends more recently, we do not expect a return to pre-Covid trading conditions for some time and consequently we have had to take the very difficult decision to begin consultations on the closure of selected branches and to reduce our workforce to ensure we can protect the group as a whole. This is in no way a reflection on those employees impacted and we will do everything we can to support them during this process.

Related: Travis Perkins to cut 2,500 jobs and shut 165 stores in UK

11.43am BST

We're expecting further declines on Wall Street when US stocks open for trading this afternoon.

Dow futures are down 1.8%, S&P 500 futures are down 1.6% and Nasdaq futures are down 1.3%. It comes amid fears that the US may have to shut its economy down again if the Covid-19 oubreak gets out of control.

The surge in the new coronavirus infection rate in the US has become the biggest concern for investors and this is denting the sentiment. For speculators, this is like Christmas coming early, they have been labelling the stock market rally as one of the most unloved rallies in the history of trading.

Yes, valuations and S&P multiples didn't make much sense with respect to the economic growth, but the hope among the optimistic investors was that as the US economy begins to open up, multiples and valuations will adjust. But perhaps, what investor forgot to factor in is what we are experiencing now: surge in coronavirus cases as the economy reopens.

11.32am BST

Our researcher and writer Jason Rodrigues is out in London's Oxford Street.

He says the only long queues have been outside the Nike store and Primark. More shoppers are arriving now, and the sun is really starting to beat down.

Oxford Street in London is now starting to fill with more shoppers, but fair to say that it's been a slow start for retailers, many of which have been shut for weeks due to the lockdown caused by the coronavirus. pic.twitter.com/19K0SFI5jx

11.09am BST

Bad news for shoppers trying to get into Primark in London's Westfield shopping centre.

Bloomberg reporter Jess Shankleman says shoppers are being turned away now due to a fault with the fire alarm.

Primark in Westfield Stratford has had to close for the day because of a problem with the fire alarm. Lots of shoppers being turned away. Must be frustrating for the staff too, who'd put so much effort into reopening.

10.56am BST

A report out this morning hones in on the hesitation that many would-be shoppers in England are feeling as shops re-open.

Visa found that nearly three quarters (73%) of Brits have concerns about small businesses reopening as lockdown measures ease, and three in five (61%) feel less comfortable shopping in store than before the pandemic.

10.35am BST

Retailers are appealing to customers to support their local shops to help them survive the coronavirus pandemic, which has devastated high street trade, Zoe Wood writes.

It's really important people go back to using their high street," said Gary Grant, the owner of toy chain The Entertainer. We employ local people in local towns and if I want to hold on to my staff I need turnover."

A mix of low consumer confidence and limits on the number of people able to enter stores mean that many shops will continue to suffer lower footfall - and lower sales - for some time to come.

Related: Retailers call on shoppers to buy from local shops

10.08am BST

Some queues outside Zara and H&M before they open at 10 but wouldn't say Birmingham city centre is packed with shoppers as clothes stores reopen.. pic.twitter.com/B8droToY6q

10.02am BST

Chinese retail sales figures released overnight suggest consumers are slow to return to previous shopping habits as the pandemic drags on.

Michael Hewson, chief market analyst at CMC Markets UK, explains:

Since lockdown measures were eased in March, Chinese consumers have proved to be somewhat reluctant to go out and spend, with retail sales since then well below the levels of last year.

At this time last year retail sales were rising at an average 8% year on year. Contrast that to this year and we've seen four monthly declines in a row, with the latest retail sales for May coming in this morning at -2.8%.

9.40am BST

Shoppers are queuing up for post-lockdown openings across the country, including this Primark outlet in Bristol.

This was the queue at Primark in Bristol as clothes shops re-open today. pic.twitter.com/4uaWQ1fz5J

9.28am BST

Germany's economic ministry says the country's economic output will face a greater decline in the second quarter than in the first...but that the easing of lockdown restrictions and key indicators suggest the worst might be over.

According to the ministry's monthly report, Germany's economic revival likely started in May, Reuters said.

9.12am BST

A quick note on one of the few economic data points being released today.

Italian consumer prices for May contracted -0.2%, both on a month-on-month and annual basis. That is worse than the previous readings of -0.1%.

9.01am BST

It's more than just shops re-starting this morning.

EasyJet has made its first scheduled flight since late March. That flight, pictured here, took off from Gatwick to Glasgow this morning.

Related: Lots of distancing, no long-distance: airlines cautiously return to the sky

8.43am BST

Not a lot of cheer across oil markets either, where Brent crude prices are down more than 3% and WTI is down around 4.2%.

Looks like fears of a second wave of infections is weighing on hopes of a recovery in fuel demand.

8.20am BST

Investors are dropping BP stock after the oil giant revealed its planned write-offs on the back of revised oil price forecasts.

That sentiment is also weighing on energy provider Centrica.

8.03am BST

It's a sea of red across major European stock markets, extending losses seen across Asia:

8.01am BST

BP has announced write-offs of up to $17.5bn as it expects the Covid-19 pandemic to have a lasting impact on the global economy and reduce demand for energy over a longer period, and to speed up the shift to a lower carbon economy.

The energy giant now expects Brent crude oil to average around $55 a barrel between 2021 and 2050, and $2.90 per million British thermal units for Henry Hub gas, the benchmark for natural gas. The new forecasts are 27% and 31% lower respectively than the average prices used in its latest annual report.

So, we have reset our price outlook to reflect that impact and the likelihood of greater efforts to build back better' towards a Paris-consistent world. We are also reviewing our development plans.

All that will result in a significant charge in our upcoming results, but I am confident that these difficult decisions - rooted in our net zero ambition and reaffirmed by the pandemic - will better enable us to compete through the energy transition.

7.44am BST

Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.

It's the day that England's shop owners have anxiously waited for since March.

European Opening Calls:#FTSE 6010 -1.56%#DAX 11729 -1.85%#CAC 4743 -1.99%#AEX 536 -1.64%#MIB 18533 -1.88%#IBEX 7183 -1.50%#OMX 1583 -1.60%#STOXX 3093 -1.94%#IGOpeningCall