A face mask is seen in front of the New York Stock Exchange (NYSE) on May 26, 2020 at Wall Street in New York City. - Global stock markets climbed Monday, buoyed by the prospect of further easing of coronavirus lockdowns despite sharp increases in case rates in some countries such as Brazil. Over the weekend, US President Donald Trump imposed travel limits on Brazil, now the second worst affected country after the United States, reminding markets that while the coronavirus outlook is better, the crisis is far from over. (Photo by Johannes EISELE / AFP) (Photo by JOHANNES EISELE/AFP via Getty Images)

Dow and global equity futures declined as concerns over increased coronaviruses increased in the United States and China

Dow (INDU) Futures fell more than 450 points, or 1.9%, before the opening bell after dropping as much as 800 points overnight. Standard & Poor’s 500 (SPX) Futures fell 1.7%, and Nasdaq (COMP) Futures fell 1.3%.
Markets across Asia also recorded sharp declines after Beijing recorded A new set of virus I grew up in the city’s largest wholesale food market. The Chinese capital has registered 79 new cases since a locally transmitted infection was reported last Friday for the first time in nearly two months.

China also reported on the economic data, noting that the recovery in the world’s second largest economy was slow.

Japan Nikki (No. 225) Increased by 3.5%. South Korea Cosby (Cosby) It lost 4.8%, to close its worst day since March. Hong Kong Hang Seng Index (HSI) China fell 2.1% Shanghai houseboat (SHCOMP) Decreased 1%.
European markets fell broadly upon opening. The FTSE 100 (UKX) It decreased 2.4% in London. Germany Dax (Dax) It decreased by 2.5%, while France CAC 40 (CAC 40) It decreased by 2.6%.
For weeks, Wall Street seemed increasingly detached from the rest of the world – big stock gains seemed inconsistent with relatively high unemployment numbers and other data showing the economy is suffering. But the markets are starting to catch up with reality, and despite a slight rebound on Friday, US indicators are fast-paced for big falls beginning this week.
With much of the United States beginning to reopen after coronavirus is closed, scientists and health experts warn of a possible second wave of the virus, which could have devastating effects on the economy. Several US states that reopened weeks ago reported an increase in the number of injuries and hospitalization.
The second wave could undermine extreme optimism about the economy that pushed US stocks to record levels.

Meanwhile, in China, signs of another wave of the virus could exacerbate an already slow economic recovery.

Industrial production, investment activity and retail sales improved somewhat from previous months, according to data released by the Chinese National Bureau of Statistics on Monday. However, all three readings fell below the expectations of Refinitiv’s analysts.

Ultimately, the consumer’s desire to leave their apartments amidst ongoing social exclusion – either with government authorization or through consumer behavior – [that] “It will determine the speed of recovery. But the consumer-led recovery in China is not moving fast forward with any degree of imagination,” Stephen Ennis, chief global strategist at Axecorp, wrote in a research note.

However, some economists pointed to positive signs. Activity in the country’s service sector expanded for the first time this year, according to the China National Manufacturing Industry Index for the service industry. The index measures the change in the output of the services sector every month.

Martin Rasmussen, Chinese economist at Capital Economics, wrote in a research report: “General economic output returned above 2019 levels in May for the first time since the outbreak of Covid 19”. We previously believed that the Chinese economy would not return to positive growth on an annual basis until [the third quarter]. But today’s data indicates that this achievement may be reached in this quarter. “

Oil also fell. U.S. oil futures fell 4.1%, to trade at $ 34.76 a barrel. Brent, the global oil index, lost 3.4% to $ 37.49 a barrel. Brent crude and the United States fell more than 8% last week amid fears of a return of the epidemic.

Matt Egan and Ankeny Tappy contributed to this report.

Leave a Reply

Your email address will not be published. Required fields are marked *