Stocks Drop On Surge In Virus Cases, Elusive US Stimulus
Sumaira FH 1 month ago Mon 26th October 2020 | 07:20 PM
London, (UrduPoint / Pakistan Point News - 26th Oct, 2020 ) :Stock markets retreated Monday with traders increasingly pessimistic that US lawmakers will pass a new stimulus package before next week's election, while spiking virus cases fanned worries about the economic impact of new containment measures.
Despite months of arduous talks in Washington, there appears to be little chance Republicans and Democrats will hammer out a rescue deal to help cash-strapped Americans, with both sides blaming each other for the impasse.
Analysts said investors had essentially given up hope of an agreement and were now betting on Joe Biden and a Democratic sweep of Congress that would open the way for an even bigger spending package in the new year.
Adding to the negative sentiment is a surge of coronavirus cases across the United States and Europe, with the World Health Organization on Sunday reporting a third straight day of record new infections globally.
Wall Street opened lower, with the Dow falling 1.
Oil prices were off around 2.0 percent.
"Naturally, growth concerns are at the root of the negative bias since the resurgence of the virus threatens more lockdowns and the lack of a stimulus deal threatens to exclude many struggling businesses and households from the economy," said analysts at Briefing.com.
Traders are also keeping tabs on a key policy-setting meeting of China's Communist Party this week, which is expected to set the course for the world's second-biggest economy for the next several years with an eye on US relations.
- Key figures around 1330 GMT - London - FTSE 100: DOWN 0.1 percent at 5,852.18 points Frankfurt - DAX 30: DOWN 2.7 percent at 12,304.51 Paris - CAC 40: DOWN 1.0 percent at 4,861.53 EURO STOXX 50: DOWN 2.0 percent at 3,134.85 New York - Dow: DOWN 1.1 percent at 28,024.52 Tokyo - Nikkei 225: DOWN 0.1 percent at 23,494.34 (close) Shanghai - Composite: DOWN 0.8 percent at 3,251.12 (close) Hong Kong - Hang Seng: Closed for holiday Euro/dollar: DOWN at $1.1819 from $1.1859 at 2100 GMT Friday Dollar/yen: UP at 104.98 Yen from 104.69 yen Pound/dollar: DOWN at $1.3025 from $1.3043 Euro/pound: DOWN at 90.74 pence from 90.89 penceWest Texas Intermediate: DOWN 2.0 percent at $39.05 per barrelBrent North Sea crude: DOWN 1.9 percent at $40.99 per barrel