Spain's Virus Cases Surge, Lockdown Imposed, Investors Derisk Stocks 

A second coronavirus wave is quickly emerging in Europe. Spanish officials are set to reimpose lockdowns in part of the country as virus cases surge. 

A town of 32,000 people in northwestern Spain will begin lockdown Friday amid a local surge in coronavirus cases.

The senior health official in the Basque country reported 338 news cases in the region on Thursday. Authorities in the northwestern Castile and León region are quarantining Aranda de Duero after 103 new COVID-19 cases emerged there. Contact tracers have reported five active clusters.

New cases have risen steadily in Spain since a more than three-month lockdown ended on June 21, reaching 1,772 new infections reported on Wednesday. A total of more than 28,000 people in Spain have died since the pandemic began, the eighth highest total in the world. -AP News

The one-week moving average of new COVID-19 cases in Europe shows Spain is becoming the epicenter once again. 

Investors are derisking Spanish stocks as cases surge. We noted this, earlier in the week, in a piece titled: "Spanish Stocks Break Support As Virus Concerns Reemerge." 

And there goes the V-shaped economic recovery in Spain, and probably the rest of Europe.