Asian stock markets fell slightly on Thursday, with the Standard & Poor’s 500 index falling 3.5% overnight, the biggest drop since June.
Before the European market saw a sharp decline, there was a sell-off in the US market. The French president announced severe measures to slow the spread of the virus, and German officials agreed to implement a four-week partial blockade.
So far, these measures are not as strict as the shutdown order that swept the world at the beginning of this year, but the worry is that they may still hit the already weak global economy.
In Asia, some countries appear to be containing the pandemic, while cases in other countries are increasing rapidly. India is expected to exceed 8 million confirmed COVID-1
Oanda’s Edward Moya said in a comment: “When it rains, there will be heavy rain, especially if you follow today’s COVID-19 headlines.” “The overvalued stock market has matured. It can be called back, but when you follow the COVID-19 headlines, it looks more like a crazy selling.”
The Bank of Japan maintained its ultra-loose monetary policy unchanged at the policy meeting that ended on Thursday. But it downgraded the economic outlook, saying that although conditions will eventually improve, “mainly due to COVID-19, the risks of economic activity and prices are biased downward.”
According to data released on Thursday, retail sales in Japan, the world’s third largest economy, fell 8.7% from the same period in September. Although commodity purchases have resumed, services remain weak.
In Thursday’s trading, Hong Kong’s Hang Seng Index,
Fell 1%, and the Nikkei 225 NIK,
It fell 0.5% in Japan. In Korea, Kospi 180721
Fell 1.7%, while the Shanghai Composite Index SHCOMP
Rise slightly. S&P/ASX 200 XJO in Australia,
A decrease of 1.9%.
Taiwan stocks also fell, Y9999
And Southeast Asia.
S&P 500 ES00 futures,
Rebounded and rose 0.9% to 3,294.20, while the futures contract of the Dow Jones Industrial Average YM00,
An increase of 1% to 26,669.00.
In the United States, cases are increasing in almost every state, and the number of deaths and hospitalizations due to COVID-19 is on the rise. Even if the most restrictive lock-in measures no longer exist, investors are worried that people will restrict their spending and activities, thereby hurting businesses. As Tuesday’s election day approaches, Washington may provide more economic support, and the US economy may lose momentum.
Charles Schwab (Charles Schwab) Vice President of Trading and Derivatives Randy Frederick (Randy Frederick) said: “Many people are beginning to believe that we are at least stable, and now we are experiencing a second ascent, which may Bring the potential GDP and everything else to the surface.” “I didn’t expect this level of volatility or the level of selling.”
Uncertainty about the upcoming presidential election has also been driving the market.
S&P 500 SPX,
It fell 119.65 points to 3,271.03. Dow Jones Industrial Average,
It fell 943.24 points, or 3.4%, to 26,519.95.Nasdaq Composite Index
It fell 3.7% to 11,004.87. Sell-offs are common, with 96% of the S&P 500 stocks falling.
Fearing that an economy that has been weakened by the virus will consume less energy and increase excess supply, crude oil fell by 5.7% on Wednesday. By early Thursday, the US benchmark crude oil CLZ20
In electronic trading on the New York Mercantile Exchange, it rose 18 cents to $37.57 per barrel.
Brent crude oil BRNZ20,
International oil prices rose 12 cents per barrel to 39.76 US dollars. It fell 5.4% on Wednesday to 39.12 US dollars per barrel.
The stock market’s worries reached its highest level since June, when the market was worried that the second round of coronavirus infection had arrived and the stock market fell suddenly. The Volatility Index, which measures investors’ expectations of the Standard & Poor’s 500 Index, climbed 20.8% on Wednesday.
As always, when the volatility increases, investors enter the security of U.S. government bonds. The yield on the 10-year U.S. Treasury bond fell from 0.79% to 0.77%. It was as high as 0.87% last week.
In currency transactions, the US dollar USDJPY,
The yen rose from 104.34 yen to 104.38 yen.