Global Stock Markets Simultaneously Drop Again
Stock markets are falling across the board, slumped in by recent trading as the COVID-19 economy takes over the United States. The slump followed hours after the US reported a record resurgence in coronavirus cases.
State epicenters across the country saw over 60,000 new cases on Thursday.
Hong Kong re-imposed tightened social distancing measures on the same day, a move to muffle the newfound cases in the city. Surrounding cities were forced to close down as well, along with Melbourne and Beijing. These cases dominated stock market sentiment, rattling stocks to unforeseen volatility.
The Hang Seng index in Hong Kong plummeted by the largest amount, at -307 points, Taiwan is down by 79 points. Down under, the ASX fell by 21 points while the Japanese Nikkei 225 went down more than 46 points.
Financial companies suffered the most throughout trading on the S&P 500 index as giants like Wells Fargo prepare for layoffs. Meanwhile, the Dow Jones Industrial Average upped by 1.3% while Boeing Co. took a hit.
Nasdaq also advanced during today’s trading.
The European stock market closed significantly lower on Thursday across European stocks as well.
Fears of fresh lockdowns in the region brought the FTSE down the most, which sled by 1.7%. Energy firms BP and Royal Dutch Shell were among the companies that fell further than 4% with oil-related worries.
The Paris FCHI, Milan FTMIB, and Madrid IBEX also dropped between 1.2% to 2%. Similarly, the software industry jumped in Europe, as the software giant SAP jumped 4.6% post-earnings report.
Economists expect Chinese equities to take their biggest hit in stock trading in the near-term. Sources claim the fall was similar to the inflations seen in 2015, but on a smaller scale.
The Market’s Focus on Thursday and Friday
Traders are paying close attention to the US-China conflict and the surge of US coronavirus cases. Tokyo and Australia are also expected to see their equities brighten.
Record deaths in Florida and California have agitated investors, but fiscal and monetary support is still widely optimistic. Risk-oriented traders are betting that the aid would contain the fallout and cited jobs data led by jobless claims optimism.
The United States reported another 1.3 million Americans filing for jobless benefits on Thursday. The figure came in lower than expected, which could help the stock market in the near term. However, economists are concerned that the current buildup of COVID-19 worries will cause another massive wave of trouble in the global economy.
Investors should still look out for the second-quarter earnings season. Analysts are expecting a colossal drop across the stock market four months into this coronavirus economy.
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