BANGKOK (AP) – Worldwide stocks were lower on Monday as investors feared a recent wave of coronavirus outbreaks in many places as vaccination efforts slowed.
Shares fell in London, Paris, Tokyo and Shanghai. US futures also slipped.
Last week’s strong end on Wall Street was followed by a downturn, with tech gains in the healthcare sector pushing the S&P 500 and the Dow Jones Industrial Average to new highs.
Moderating bond yields has helped restore confidence that the Federal Reserve will soon go to raise interest rates to control inflation as the economy recovers from the shock.
The British FTSE 100 lost 0.6% to 6872.56. The German DAX was down 0.1% to 15,220.38 and the Paris CAC 40 was down 0.3% to 6153.79. Futures for S&P 500 և Dow Industrials were down 0.3%.
In Asia, the resurgence of COVID-19 vaccine infections և problems is undermining confidence that vaccines will soon end the new coronavirus-induced blockages և disasters.
China’s top anti-depressant official said over the weekend that the effectiveness of Chinese coronavirus vaccines was low and that the government was considering mixing them to boost them. It was seldom accepted at a time when the country was still battling outbreaks of the virus, which were first reported in the central Chinese city of Wuhan.
Japan Aponia is battling infections as it prepares to host the 2020 Tokyo Olympics. Thai health officials warn that the daily rate of new infections could exceed 28,000 if no immediate action is taken to tackle the country’s worst outbreak to date.
“Vaccine distribution in Asia remains slow, but what is even more troubling is the new controversy over virus overload, with second-wave prevalence in India, the Philippines and now Thailand,” said Axi’s Steven Ines in a report. He said “the global prospects for travel continue to be disgraceful.”
The Nikkei 225 lost 0.8% in Tokyo to 29,538.73 and the South Korean Kospi rose 0.1% to 3,135.59. In Hong Kong, the Hang Seng Index fell 0.9% to 28,453.28. The Australian S & P / ASX 200 fell 0.3% to 6974.00, and the Shanghai Composite Index fell 1.1% to 3,412.95.
India’s Sensex fell 3.4% to 47,906.75. Outbreaks of coronavirus in the country are being pushed back, exceeding the progress of vaccination of its 1.4 billion population.
Shares in South Korea’s SK Innovation Co. rose 12 percent after it settled a trade dispute with rival LG Energy Solution. The companies pledged to work together to strengthen the supply chain of electric batteries in the United States, moving forward with a program to produce batteries in Georgia, which President Biden called “a victory for American workers, for the American auto industry.”
Shares of Chinese e-commerce giant Alibaba were up 6.5% after the company announced it had been fined $ 2.8 billion for anti-competitive behavior. The penalty was lower than fear as the ruling Communist Party tightened control over the fast-growing technology industry.
The S&P 500 was up 0.8% on Friday, hitting a fourth record high of 4,128.80 this week. The Dow gained 0.9% to 33,800.60, while the Nasdaq Composite rose 0.5% to 13,900.19.
Shares of small companies, which outperformed the wider market this year, fell behind on Friday. The Russell 2000 Small Business Index fell less than 0.1% to 2,243.47.
The yield on the 10-year US Treasury bill, which affects mortgage and other interest rates, is stable at 1.65%. It ended 1.66% on Friday, up from 1.75% last Monday.
Investors are cautiously optimistic about the recovery of the economy, especially in the United States, where the distribution of vaccines is growing, “said President Biden.”
Investors turn their attention to quarterly results when the profit season begins. Major banks are among the first to report their results, including JPMorgan, Wells Fargo and Bank of America. Analysts polled by FactSet raised their earnings forecasts for the quarter. They expect slightly more than 24% growth, compared to the forecast in September that the S&P 500 companies will see 13% growth.
New York Mercantile Exchange fell 10 cents to $ 59.42 a barrel in electronic trading on the New York Mercantile Exchange. It lost 28 cents on Friday, reaching $ 59.32 per barrel. Brent crude rose 24 cents to $ 63.19 a barrel.
The US dollar bought 109.46 Japanese yen against 109.71 yen on Friday. The euro slipped to $ 1.1885 from $ 1.1899.