UK and European stocks are higher this morning but fell heavily on Monday on concerns over a new coronavirus strain. The new mutation appears to be 70% more effective in its transmission and has forced the UK government to impose tight lockdown restrictions in London and the south-east of England. Many countries have shut their borders to Britain.

Regarding the negotiations between the UK and EU to find agreement on a post-Brexit trade deal, Boris Johnson said the position is “unchanged, there are problems,” and that the UK could still leave without a deal. Today however, there are reports that the EU may make a new proposal on fishing rights which is a main sticking point.

US stocks rallied back late in Monday’s session to recover most of the losses seen earlier. Congress approved a $900 billion coronavirus stimulus package on Monday night.

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