The world’s major stock markets tumbled on Monday due to investor concern over coronavirus outbreaks, the impact on the economy and stagnation of negotiations on an economic aid plan for the US economy.
At the close, the Dow Jones was down 2.29%, the S&P 500 by 1.86%, while Nasdaq technology was down 1.64%.
The New York park opened the week reacting pessimistically to the unstoppable second wave of infections of the pathogen that causes covid-19 in the United States and several European countries. In the United States, the number of daily infections has averaged close to 70,000 in the past seven days, a new record in the country, ten days before the presidential and general elections.
Likewise, analysts point out that this decline is also affected by the fact that the hopes of many investors that Democrats and Republicans can reach an agreement to approve a new stimulus package before election day on November 3 is fading. .
Especially after House Speaker Nancy Pelosi, a Democrat, and White House Chief of Staff, Republican Mark Meadows, accused each other of changing focus in the new stimulus talks.
“Uncertainty about fiscal stimulus, as the number of SARS-CoV-2 cases increases globally, should keep volatility unusually high,” Says Dennis DeBusschere of Evercore ISI, quoted by the specialized site Marketwatch.
DIFFICULT EUROPEAN AUTUMN
European stock markets closed in the red this Monday due to the worsening of the pandemic in the Old Continent and the economic impact that the restrictions adopted to stop the second wave of covid-19 could have. The losses were generalized in the European markets, where the Frankfurt stock exchange fell by 3.71%, as well as Paris (-1.90%), London (-1.16%), Madrid (-1.40%) and Milan (-1.76%).
According to Renta4Banco, the session on the stock exchange is marked by the new restrictions on mobility applied in various European countries, especially in Italy and Spain, where the state of alarm, which provides for a night curfew, has once again been imposed.
In Latin America, the Colombian stock market gained 0.15%, Argentina fell 5.12%, Brazil lost 0.51%, Chile lost 2.71%, and Mexico lost 1.22%.
Previously, in Asia, Tokyo was down 0.09%; and Seoul, 0.72%.