Global stocks sink as fears of growing corona in the US and China increase

Global stocks sink as fears of growing corona in the US and China increase

Daou (INDU) The futures fell more than 800 points, or 3.2%, extending losses before the start bell. S&P 500 (SPX) futures fell 3% and Nasdaq (COMP) future contracts fell 2.3%.
Markets across Asia also fell sharply after the Beijing record a new complex of the virus comes from the city’s wholesale food market. The Chinese capital recorded 79 new cases of local infection last Friday for the first time in almost two months.

China has also said it is recovering economically, indicating that recovery in the world’s second-largest economy is slowing.

Japan Nicky (N225) closed 3.5%. South Korea Kospi (ΚΟΣΠΙ) lost 4.8%, closing the worst day since March. Hong Kong Hang Seng Index (HSI) China also fell 2.1% Shanghai Composite (ΣΚΟΜΠ) decreased by 1%.
European markets generally declined. The FTSE 100 (UKX) decreased 2.4% in London. Germany DAX (DAX) fell 2.5%, while France CAC 40 (CAC40) decreased by 2.6%.
For weeks, Wall Street has become increasingly disconnected from the rest of the world – large stock gains seemed incompatible with relatively high unemployment rates and other evidence that the economy is struggling. But markets have begun to recover, and despite a slight recovery on Friday, U.S. indices are in a rush to start heavy cuts this week.
As many of the United States begins to reopen after being blocked by the coronavirus, scientists and health experts warn of a possible second wave of the virus, which could have devastating effects on the economy. Several U.S. states that reopened weeks ago are now reporting an increasing number of infections and hospitalizations.
A second wave could undermine the extreme optimism about the economy that had led US stocks to record levels.

In China, meanwhile, signs of another wave of the virus could trigger an already slow economic recovery.

Industrial production, investment activity and retail sales have improved somewhat in recent months, according to data released by China’s National Bureau of Statistics on Monday. Also, the three measurements fell below the forecasts of analysts asked by Refinitiv.

“Ultimately, it is the willingness of consumers to leave their apartments in the face of a permanent social distance – either by government order or by consumer behavior – [that] it will dictate the speed of recovery, “wrote Stephen Innes, chief strategic officer for global markets at AxiCorp. But China’s consumer recovery is not moving fast beyond imagination. “

However, some economists have shown positive signs. The country’s services sector expanded for the first time this year, according to China’s National Services Industry Index. The index measures the change in production in the service sector each month.

“Total economic output returned above 2019 levels in May for the first time since the outbreak of Covid-19,” wrote Martin Rasmussen, a Chinese economist for Capital Economics. “We had previously thought that China’s economy would not return to positive annual growth until [the third quarter]. But today’s data shows that this milestone can be achieved this quarter. “

The oil also moved lower. US oil contracts fell 4.1% to $ 34.76 a barrel. Brent, the global oil benchmark, lost 3.4% to $ 37.49 a barrel. Brent and U.S. oil prices both fell more than 8% last week amid concerns about the resurgence of the pandemic.

– Matt Egan and Anneken Tappe contributed to this report.

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