Business Desk :
Shares in Europe and Asia have fallen as growing concerns about the outbreak of Covid-19 have clouded the outlook for the global economy.
In early Monday morning trading, the European STOXX 600 index fell 1.4%. London’s FTSE 100 fell 1.3% as the UK lifted most of its coronavirus restrictions.Optimism about resumption The shadow becomes lighter More than 500,000 people, including Prime Minister Boris Johnson, were told to quarantine after contact with infected individuals. Companies, including supermarkets and ports, have reported staff shortages.
Japan’s Topix fell 1.3% and Hong Kong’s Hang Seng fell 1.7%.
After US listed stocks close on Friday Worst weekly performance In more than a month, the futures market has suggested that the good S & P 500 index will fall 0.5% in early trading.
Stock prices plummeted as investors worked on the rapid spread of the highly infectious Delta variant, Covid-19, which struck countries that previously had the virus under control. This move was in line with uncertainty about the central bank’s financial support path after rising inflation in the United States and the United Kingdom.
Michael Hood, global multi-asset strategist at JPMorgan Asset Management, said the rapid spread of the Delta variant “forces investors to refocus on viruses at a time when most people were happy to leave the problem behind. “.
New York State on Saturday recorded more than 1,000 cases a day for the first time since mid-May.Authorities in countries such as Australia and Vietnam were fighting the rise in infections, but Singapore tightened social distance restrictions and the Tokyo Olympics Setback Due to the outbreak of coronavirus.
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Stoxx and the USS & P 500 set a record earlier this month against the backdrop of enthusiasm for companies benefiting from the coronavirus vaccine and the economic resumption.
Ewout van Schaick, Head of Multi-Asset Investment at NN Investment Partners, said: “Of course, the resurgence of the virus is causing uncertainty about economic development in the coming months.”
The market is also working on how monetary policy makers will respond to rising inflation after rising consumer prices in the United States and the United Kingdom. Unexpected acceleration In June.The Federal Reserve Board of Governors is under pressure to taper $ 120 billion in bond purchases each month, which is driving the market across the pandemic in response to inflationary trends, but some UK lawmakers have said. Push The Bank of England curbs government debt purchases.
Benchmark 10-year Treasury yields, which are inversely proportional to price, fell 0.02 points to 1.275 percent as traders bought shelter assets.
The dollar index, which measures greenbacks against major currencies, rose 0.3%. The euro fell 0.2% against the dollar to $ 1.1781.
Brent crude, the international oil benchmark, fell 1.5% to $ 72.47 a barrel.The movement came later Opec and its allies have reached the Drug Enforcement Administrationl Announced plans to raise oil production to counter rising prices and cancel all production cuts made during the pandemic by the end of 2022.
Brent soared High price for the first time in 3 years Demand recovered this year, surpassing $ 74 per barrel. It was unclear whether the OPEC + price cut would be sufficient to offset the upward pressure on prices, as demand is expected to increase further in the coming months.
