Global markets slump on covid resurgence fears

Wall Street’s 3 main stock market indices all closed more than 1% lower on Monday. Aditya Vyas/Unsplash

Wall Street’s 3 main stock market indices all closed more than 1% lower on Monday. Aditya Vyas/Unsplash

Global stock markets fell on Monday on concerns that rising covid rates would stifle economic growth.

Share prices were down worldwide as the increased number of Delta variant infections dampened investor sentiment.

“The big concern for the market is whether we are going to see a slowdown in the global economic recovery,” said Russ Mould, investment director at AJ Bell, told the BBC.

Japan’s Nikkei index was down by 0.63%, South Korea’s Kospi slipped by 0.31%, the Shanghai composite dropped by 0.56%, while Hong Kong’s Hang Seng index was flat, per CNBC.

The Stoxx Europe 600 was down by 2.3%, “its biggest one day price fall of 2021,” reported the Financial Times. Germany’s Dax index dropped by 2.6%, France’s Cac 40 closed about 3% lower and London closed 2.6% lower, per DW.

In the US, Dow Jones index fell by 2.1%, “its worst drop since October,” according to CNBC. The S&P was down by 1.6% and Nasdaq declined by 1.1%. Ten-year US treasury yields closed at around 1.2%, noted Bloomberg, a rate last seen in February.

“The next one to two months will be an important litmus test of governments’ strategy in normalising lives and economic activities amid the threat of the pandemic,” Tai Hui, chief Asia market strategist at JPMorgan Asset Management, was quoted as saying by the Financial Times.