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Home / Business / The stock plunges to a two-week low due to a virus surge threatening to reopen the plan

The stock plunges to a two-week low due to a virus surge threatening to reopen the plan



Reuters London-Reuters London-World stock markets hovered near a two-week low on Monday, because the relentless spread of the US coronavirus has suppressed optimism about the global economy and triggered people to delay some restart plans for a longer period of time. Worry.

FILE PHOTO: A man wearing a protective mask after the outbreak of coronavirus (COVID-19) walked in front of a stock quote board outside a brokerage company in Tokyo, Japan, on May 18, 2020. REUTERS/Kim Kyung-Hoon

Global COVID-19 cases surged to the 10 million mark, due to the increase in the number of cases in Australia, while the sharp rise in the southern United States and western United States threatened the slowdown in economic recovery.

This has led to weaker trade activity in Europe and the STOXX 600 index remained flat. At the same time, Asian stock markets plunged into losses at the close of Friday’s scandal on Wall Street. The S&P 500 index’s E-Mini futures rose 0.1%.

IG senior market analyst Joshua Mahony said: “The market is trying to figure out what new specifications will be threatened by further outbreaks when trying to unlock the measures.”

In the case of increased cases, Texas and Florida have taken similar measures, and California has ordered the bar to close on Sunday. Washington State and San Francisco have suspended the reopening plan.

On Sunday, the number of deaths due to COVID-19 reached 500,000 worldwide, with a quarter of these cases in the United States, with a surge in cases in the southern and western states.

John Woolfitt, head of trading at Atlantic Capital Markets, said: “There is a real battle between the optimism that the market is in recovery and news of increased cases in certain regions (such as the United States).” “I think this battle will continue into the United States. Deal with this.”

MSCI’s world stock index fell 0.1%, reaching its lowest level since June 15. Japan’s Nikkei index fell 2.3%, and Chinese blue chip stocks fell 0.7%.

Sovereign bonds have benefited from a shift to security. The yield on 10-year US bonds is close to 0.64%, which was briefly as high as 0.96% in early June. On Monday, the German Treasury yield fell to a one-month low.

The dollar has generally moved in the opposite direction, rising from a low of 95.714 at the beginning of the month to 97.179 against a basket of currencies.

But the dollar was weak on Monday, falling 0.3%, and the euro rose 0.5% against the dollar to $1.1280. (Figure: Global Market Asset Performance QTD, here)

For the US data, this is an important week, before the US Independence Day holiday, the ISM manufacturing index on Wednesday and employment data on Thursday. Fed Chairman Jerome Powell also testified on Tuesday.

“We. We believe that economic data will further prove that the economy is in the worst period of recession.” CBA currency analyst Joseph Capurso (Joseph Capurso) said.

“However, if extensive restrictions are re-applied, it may lead to a double-dip recession, which will cause the dollar to surge.

In the commodity market, the price of gold is close to the highest level since the beginning of 2012, at $1,773 per ounce.

Fearing that a pandemic will slow down the reopening of certain economies, thereby suppressing fuel demand, oil prices have fallen.

Brent crude oil futures fell 27 cents to US$40.76 per barrel, while US crude oil fell 23 cents to US$38.26.

Reporting by Thyagaraju Adinarayan in London, additional reporting by Wayne Cole in Sydney; Editing by Ed Osmond

Our standards:Thomson Reuters Trust Principles.

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