Markets Struggle As Coronavirus Hammers Economies Worldwide
World stock markets were little changed Friday after almost unremitting bad news of rapidly-shrinking economic activity, highlighting the "devastating impact" coronavirus has had on the global economy, analysts said
London, (UrduPoint / Pakistan Point News - 31st Jul, 2020 ) :World stock markets were little changed Friday after almost unremitting bad news of rapidly-shrinking economic activity, highlighting the "devastating impact" coronavirus has had on the global economy, analysts said.
Markets in Europe were digesting massive double-digit falls in economic output as well as a swathe of mostly grim corporate earnings which only further highlighted the damage done by the virus.
Europe as a whole was hammered by its sharpest recorded contraction in the second quarter, with GDP down 12.1 percent in the eurozone and 11.9 percent across the full EU.
Gains in the techs helped provide some support but not enough to make a huge difference at the end of yet another turbulent week.
The tech-rich Nasdaq Composite Index led the US market, adding 0.8 percent in early trade after tech giants Amazon, Alphabet, Apple and Facebook all reported better-than-expected results as the sector looks to be the big winner amid the pandemic upheaval.
- Historic contractions - "GDP figures released today confirmed the devastating economic impact of the pandemic," noted Oxford Economics analyst Rosie Colthorpe.
"Today's GDP figures all showed historic contractions in output but that the pandemic has caused such massive economic damage is not a surprise." The effect of COVID-19 on the US economy was even more marked than in Europe with a 32.
That was the worst US quarter since records began in the aftermath of World War II.
The numbers added to fears about the long-term economic impact of COVID-19 and overshadowed a better-than-forecast read on Chinese factory activity that suggested the country is slowly emerging from the crisis.
- 'Grim day at office' - "It was a grim day at the office for the global economy... as the extent of the COVID-19 damage was laid bare," said PVM analyst Stephen Brennock.
"Europe's biggest economy shrunk by ... the biggest fall since 1970 and wiped out nearly a decade of German growth.
"What is more, this puts the world's biggest economy firmly in recession after posting negative growth in the first quarter." In Asia, Tokyo and Sydney were worst-hit with traders worried about a fresh spike in infections in both countries.
- Key figures around 1345 GMT - New York - Dow: UP 0.1 percent at 26,345.83 London - FTSE 100: FLAT at 5,985.13 points Frankfurt - DAX 30: UP 1.0 percent at 12,494.70 Paris - CAC 40: UP 0.3 percent at 4,868.12 EURO STOXX 50: UP 0.6 percent at 3,227.38 Tokyo - Nikkei 225: DOWN 2.8 percent at 21,710.00 (close) Hong Kong - Hang Seng: DOWN 0.5 percent at 24,595.35 (close) Shanghai - Composite: UP 0.7 percent at 3,310.01 (close) Euro/dollar: DOWN at $1.1813 from $1.1847 at 2100 GMT Dollar/yen: UP at 105.52 Yen from 104.73 yen Pound/dollar: UP at $1.3127 from $1.3096 Euro/pound: DOWN at 89.97 pence from 90.46West Texas Intermediate: UP 1.3 percent at $40.37 per barrelBrent North Sea crude: UP 0.8 percent at $43.28