Reblocking Europe and re-proliferation of US corona stagnated 1st anniversary of entering the gloomy bull market
The international financial and futures markets have collapsed due to concerns about the’third epidemic’ of the novel coronavirus infection (Corona 19).
As Europe and other parts of the world began reblocking or postponing plans to normalize the economy, oil prices, which surged in advance due to anticipation of normalization, plummeted, and New York and European stock markets also showed a downtrend.
West Texas crude oil (WTI) for May delivery on the New York Commercial Exchange (NYMEX) on the 23rd (local time) closed at $57.76, a drop of 6.2% ($3.80) per barrel from the previous day.
Since the 5th of last month, the lowest price of $60 per barrel has collapsed.
According to Dow Jones Market Data, the closing price of WTI on the same day fell 12.6% from the last high of $66.09 per barrel on the 5th to enter the correctional market.
International gold prices have also slowed.
Gold for April delivery on the New York Merchandise Exchange closed at $1,725.10, down 0.8% per ounce ($13).
It is the lowest price since the last 12 days.
The major indexes of the New York Stock Exchange also drew downward curves at once.
The Dow Jones 30 Industrial Average closed the market at 32,423.15, 308.05 points (0.94%) lower than the battlefield.
The Standard & Poor’s (S&P) 500 index fell 30.07 points (0.76%) to 3,910.52, while the technology-oriented NASDAQ index fell 149.84 points (1.12%) to 13,227.70, respectively.
Major markets in Europe also showed weakness.
The UK London Stock Exchange’s FTSE 100 index fell 0.40% from the closing price of the previous trading day to 6,699.19, while the French Paris Stock Exchange’s CAC40 index fell 0.39% to 5,945.30.
The fact that countries around the world, which had been rapidly deregulating due to the declining trend of new corona19 cases and the spread of vaccines, faced fears of a re-emergence again, and began to lock them again, which was a bad thing for the market.
Germany, which had entered into phased blockade easing, announced the day before that it would return to the previous blockade by the 18th of next month.
In particular, on the 1st to 5th of the following month until Easter, a super-strong’complete blockade’ will be implemented to ensure that all places are closed and everyone stays at home.
Other European countries, including Austria, have also put a brake on easing the blockade, delaying the resumption of restaurants and other businesses.
France entered a de facto blockade of one-third of the country’s territory for four weeks from last weekend.
The United States, the country with the greatest damage to Corona 19, has greatly eased restrictions in many areas, but this has resulted in an increase in the number of new confirmed cases in 21 states, CNBC Broadcasting said.
New Jersey Governor Phil Murphy appeared on CNN the day before and said that if the number of confirmed cases increases again, plans to resume economic activity could be stopped.
Brad McMillan, Chief Investment Officer of Commonwealth Financial Network, told CNBC, “The third wave of pandemic will put a wider population into a medically and economically vulnerable state.” It will take.”
As a result, stocks that are expected to suffer significant damage due to restrictions on economic activity in the New York Stock Market have fallen sharply.
Cruise carriers Carnival (-7.8%) and Norway Cruise (-7.2%) plunged more than 7%, and airlines such as American Airlines (-6.6%) and United Airlines (-6.8%) were also sluggish.
The New York Stock Market showed a downward trend on the 1st anniversary of entering the’bull market’ immediately after the Corona 19 incident.
According to CNBC, the S&P 500 index hit a year-round low on March 23 last year, then started rebounding, and soared about 80% at the end of the year.
/yunhap news