European and Asian stock markets fell, as growing concerns about the Covid-19 outbreak cast a shadow over the global economic outlook.
In early trading on Monday, the Stoxx Europe 600 Index fell 1.4%. As England lifted most of the coronavirus restrictions, the London FTSE 100 Index fell 1.3%.Optimism about reopening is Overshadowed More than one million people, including Prime Minister Boris Johnson, were told to quarantine after coming into contact with infected people. Businesses including supermarkets and ports report staff shortages.
Japan’s Topix Index fell 1.3%, while Hong Kong’s Hang Seng Index fell 1.7%.
After U.S. stocks close on Friday Worst weekly performance More than a month later, the futures market signaled that the S&P 500 index would fall by 0.5% in early trading.
As investors struggled to cope with the rapid spread of Covid-19’s highly contagious Delta variant, the stock market plummeted, and the variant hit countries that had previously contained the virus. This move coincides with the uncertainty of the central bank’s monetary support path after rising inflation in the United States and the United Kingdom.
Michael Hood, a global multi-asset strategist at JP Morgan Asset Management, said that the rapid spread of Delta variants “forces investors to refocus on the virus, and at this time most people are happy to leave this issue behind.”
On Saturday, New York State recorded more than 1,000 cases in a single day for the first time since mid-May. Authorities in countries such as Australia and Vietnam are fighting rising infections, Singapore tightening social distancing restrictions, and the Tokyo Olympics Back off Due to the coronavirus outbreak.
The Stoxx Index and the U.S. Standard & Poor’s 500 Index reached record highs earlier this month due to the high level of enthusiasm for the coronavirus vaccine and the benefits of businesses from the reopening of the economy.
Ewout van Schaick, director of multi-asset investment at NN Investment Partners, said: “Valuation and sentiment have reached extreme growth highs.” “Of course, the current virus recovery is causing uncertainty about economic progress in the coming months.”
After rising consumer prices in the U.S. and U.K., the market is also struggling to cope with how monetary policymakers will respond to rising inflation Accidental acceleration In June.In response to inflationary trends, the Federal Reserve is under pressure to reduce the size of its monthly bond purchases of US$120 billion, which have boosted the market throughout the pandemic, and some British lawmakers have promote The Bank of England controls its own government bond purchases.
As traders buy safe-haven assets, the yield on the benchmark 10-year US Treasury bond is inversely proportional to its price, falling 0.02 percentage points to 1.275%.
The U.S. dollar index, which measures the U.S. dollar against major currencies, rose 0.3%. The euro fell 0.2% to US$1.1781 against the US dollar.
The international oil benchmark Brent crude fell 1.5% to US$72.47 per barrel.This move followed OPEC and its allies reach an agreementl Increase oil production in response to price increases, and announced plans to reverse all production cuts during the pandemic by the end of 2022.
Brent soared to Three-year high Due to the rebound in demand this year, oil prices have exceeded US$74 per barrel, and as demand is expected to rise further in the coming months, it is uncertain whether OPEC+ production cuts will be sufficient to offset the upward pressure on prices.