Stocks Down On Delta Fears, Aluminium Hits 13-yr High
Faizan Hashmi 17 days ago Wed 08th September 2021 | 08:01 PM
European and US markets extended losses Wednesday on worries about the impact of Covid's Delta variant on the global economic recovery while aluminium prices hit a 13-year high after the coup in top global producer Guinea
London, (UrduPoint / Pakistan Point News - 8th Sep, 2021 ) :European and US markets extended losses Wednesday on worries about the impact of Covid's Delta variant on the global economic recovery while aluminium prices hit a 13-year high after the coup in top global producer Guinea.
"Fears of slowing growth trimmed recent gains on... major indices, with expectations being revised to incorporate the effect that the Delta variant may be having on the performance of corporates in the current third quarter," noted Richard Hunter, head of markets at Interactive Investor.
In commodities trading, prices of aluminium hit $2,807.50 in Asian trade on the London metals market -- the highest since 2008 -- on supply concerns following the coup in Guinea, which has the world's largest reserves of bauxite from which the metal is made.
Bitcoin recovered, sitting at around $46,750 after seeing wild fluctuations on Tuesday as El Salvador became the first country to use it as legal tender.
The unit had plunged by almost a fifth to as low as $43,000 after a technical issue hit the official digital wallet on vast consumer demand, though that was later resolved.
Traders are keeping a close eye on the fast-spreading Delta strain, which is sending infection rates spiking around the world and forcing some governments to reimpose containment measures or lockdowns, raising concerns about the economic recovery.
Still, observers say the general mood is positive for the future, with hopes that the US Federal Reserve will delay tapering its monetary policy until the end of the year lending support.
"Localised setbacks in combating the virus have the potential to contribute to market volatility and slow the economic rebound in selected countries," noted Mark Haefele at UBS Group AG.
"But we continue to see broad progress in curbing the pandemic and returning to economic normality.
" Tokyo's Nikkei 225 ended above 30,000 points for the first time since April after Japan's Prime Minister Yoshihide Suga last week said he would stand down, raising hopes his successor will introduce fresh economic stimulus.
Data showing growth in the second quarter was better than first thought added to the positive vibes in Japan.
The Nikkei has risen around five percent since the Suga news broke, putting the index on course for a three-decade high.
While Tuesday saw Wall Street's Nasdaq clock yet another record with a small gain, the S&P 500 and Dow indices ended with a whimper as they reopened after a long weekend.
All three major indices dipped at the start of trading on Wednesday, with the Dow shedding 0.1 percent.
"The hesitant tone has carried over from yesterday and is most likely the product of some angst about the stock market being ripe for a pullback period," said market analyst Patrick J. O'Hare at Briefing.com.
- Key figures around 1330 GMT - London - FTSE 100: DOWN 0.5 percent at 7,111.27 points Frankfurt - DAX 30: DOWN 1.0 percent at 15,681.71 Paris - CAC 40: DOWN 0.5 percent at 6,689.57 EURO STOXX 50: DOWN 0.7 percent at 4,195.61 New York - Dow: DOWN 0.2 percent at 35,058.32 Tokyo - Nikkei 225: UP 0.9 percent at 30,181.21 (close) Hong Kong - Hang Seng Index: DOWN 0.1 percent at 26,320.93 (close) Shanghai - Composite: FLAT at 3,675.19 (close) Dollar/yen: DOWN at 110.27 yen from 110.30 yen at 2050 GMT Pound/dollar: DOWN at $1.3755 from $1.3786 Euro/dollar: DOWN at $1.1813 from $1.1847 Euro/pound: DOWN at 85.85 pence from 85.90 penceBrent North Sea crude: UP 1.6 percent at $72.86 per barrelWest Texas Intermediate: UP 1.8 percent at $69.60 per barrel