Markets slide as rising Covid-19 cases spook investors – business live | Business






A Manhattan restaurant like New York last night Photo: Johannes Eisele / AFP / Getty Images

Good morning, and welcome to our continued coverage of the world economy, financial markets, the euro zone and business.

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After heavy losses yesterday, there is an atmosphere of nervousness in the markets today, as investors are frightened by the sharp increase in Covid-19 cases in the USA.

Shares have already fallen sharply in Asia-Pacific, below the four-month highs, after US officials reported that new Covid-19 cases have been rising most rapidly since April.

The possibility of a second wave of feared infection brought down 710 points, or 2.7%, of the Dow last night, with transportation companies and energy stocks among the big fallers.

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Evan O’Connell
(@evanoconnell)

Yes, this US curve https://t.co/E2hTCvULxr

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June 25, 2020

My colleagues Amanda Holpuch and Maanvi Singh explain how the situation is deteriorating in parts of the USA:


A resurgence of coronavirus is ending two months of progress in the U.S. and sending infections to new levels in the southern and western states. Administrators and health experts warned on Wednesday that politicians and an audience that, in many cases, is tired of being imprisoned, is letting a disaster happen.

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Although newly confirmed infections have steadily declined in the first hot spots, such as New York and New Jersey, several other states have set one-day records this week alone, including Arizona, California, Mississippi, Nevada, Texas and Oklahoma.

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The global scenario is that cases worldwide exceeded 9.4 million on Thursday, and are expected to pass 10 million by the end of the week. At least 480,000 people have died so far.

With cases worldwide increasing by one million a week, some investors may be wondering if the markets have moved forward in the past two months.

Jim Reid of German bank says that volatility is back, with a bang.


A plethora of bad news about the virus led to a huge sale of risky assets yesterday, with volatility returning to financial markets once again..

It was not just a bad headline that led to the crash, but a trickle of negative stories that combined to show growing signs of a deteriorating virus, most obviously in the U.S. In terms of news, Florida (the third most populous state in the U.S.) saw the number of Covid-19 cases increase 5.3% yesterday, just above the previous 7-day average of 3.7%, and the number of hospitalizations increased 256 in the state, the biggest increase in a month.

California also saw a record jump in cases, with more than 8,800 new ones yesterday. This amounts to an increase of 4.8% – notably above the average daily increase of 2.5% in the last week.

The prospect of a new trade war also hit inventories, after the United States drew up plans to impose tariffs on $ 3.1 billion in European products, such as olives, sweets and cakes, beer, gin and vodka.

So, after diving 3% or 196 points yesterday, Britain FTSE The index 100 is expected to fall again this morning.

CMC Markets
(@CMCMarkets)

Live market update of the CMC trading desk – opening calls in Europe:#FTSE 6108.19 -0.25%#DAX 12140.75 0.39%#CAC 4867.77 -0.07%#IBEX 7192.74 -0.04%
The prices are only indicative. $ FTSE $ DAX $ CAC $ IBEX


June 25, 2020

Even today, we'll find out how intensely retail sales have increased in the UK and the US since the blocks were eased … in addition to the latest weekly US unemployment report.

The agenda

  • 11:00 am BST: CBI distribution business survey on UK retail sales in June
  • 1:30 pm BST: US durable goods sales in May
  • 1:30 pm – BST – weekly unemployment figures in the USA

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