On Tuesday, the European stock market opened down after a choppy day in Asia, where countries imposed lockdowns and other restrictions to battle a coronavirus outbreak in the area. London, Paris, Hong Kong, and South Korea were among the cities where benchmarks decreased.
Shanghai’s composite index rose slightly in China, while Tokyo was closed for the holiday weekend in Japan. There was a decrease in US futures prices.
Due To Viral Outbreaks, Market Share Has Declined Dramatically
As a result of President Joe Biden’s declaration that he intends to nominate Jerome Powell for a second term as head of the Federal Reserve, the S&P 500 lost 0.3 percent, the Nasdaq lost 1.3 percent, and the Dow Jones Industrial Average gained only a little.
A vote of confidence in Powell’s leadership amid the terrible interruptions created by the coronavirus outbreak, Biden’s declaration was made public.
Another round of limitations has been implemented to try to stop the spread of the coronavirus after recent outbreaks in Europe, the US, and Asia. There have been protests in Europe about the resumption of COVID-19 infections, which prompted authorities to urge calm. The continent is becoming the epicenter of the pandemic, as the number of infections reaches record highs in various countries.
Second terrible Christmas season in Europe due to an increase in infections and measures to keep them under control. The DAX index in Germany sank 1.4% to 15,889.88 points, while the CAC 40 index in Paris fell 1.3% to 7,011.34 points in early trading on Tuesday. The UK’s FTSE 100 index declined by 0.7 percent to 7,207.51 points.
The futures prices of the S&P 500 and the Dow Jones industrials both fell by 0.4 percent. The spread of the disease has slowed in some Asian countries, most notably China and South Korea.
Hang Seng in Hong Kong down 1.2 percent to 24,651.58 points, while the Kospi in Seoul fell 0.5 percent to 2,997.33 points during the Asian trading day on Friday. A rise of 0.8 percent in the S&P/ASX 200 index on the Australian stock market was followed by a 0.2 percent rise in the Shanghai Composite index, both at 3,588.77.
As a result, the stock market in India surged, while in Taiwan, it fell. When it comes to the Federal Reserve, the focus of investors has been on whether rising inflation forces the central bank into a faster pace of asset purchase cuts and a higher benchmark interest rate. Since the Federal Reserve has begun to curtail its bond purchases, interest rates have remained low to aid the economy and financial markets.
On the other hand, the New York Mercantile Exchange reported that U.S. benchmark crude oil declined by 86 cents to $75.89 a barrel in electronic trading. This week’s low in oil prices was seen in Brent crude, which is used as a global standard. The yen-dollar exchange rate fell to 114.63 yen towards the end of the trading day on Monday, from 114.88 yen earlier in the session. After a little rise to $1.1265 from $1.1237, the euro has regained some ground.
Traders await word from Vice President Joe Biden on whether the United States’ strategic oil reserve may be released in conjunction with other major oil-consuming nations such as Japan, South Korea, and India. OPEC+ may be forced to rethink its production goals if the United States takes action, according to Naeem Aslam of Avatrade, who conducted a study on the matter.