Saturday, December 5, 2020
News

Stock markets slide over rising Covid-19 cases

   SocialTwist Tell-a-Friend    Print this Page   COMMENT

New York | Tuesday, 2020 8:45:06 AM IST
US stock markets suffered their sharpest drop in weeks as concerns about the economic impact of surging coronavirus cases sent shares tumbling.

The Dow Jones Industrial Average closed down 2.3 per cent, after dropping more than 3 per cent earlier in the day. The S&P 500 fell 1.8 per cent and the Nasdaq 1.6 per cent, the BBC reported on Monday.

Stocks in Europe, where a rise in virus cases has prompted new restrictions, also declined.

Shares in travel and energy firms took some of the heaviest losses.

In the United States, cruise lines Royal Caribbean Group,Carnival and Norwegian all dropped more than 8 per cent, while in the UK, British Airways owner IAG closed 7.6 per cent lower.

Travel firms have been some of the most sensitive to warnings about the virus, which experts worry will intensify as winter approaches.

On Monday, Michael Ryan, an emergencies expert for the World Health Organization, said that Europe would need "much more comprehensive" measures to get the virus under control.

"Right now we're well behind this virus in Europe, so getting ahead of it is going to take some serious acceleration in what we do," he said.

On Monday, France's CAC 40 ended 1.9 per cent lower, while Germany's Dax index dropped 3.7 per cent. In the UK, the FTSE 100 fell nearly 1.2 per cent.

US President Donald Trumphas vowed to avoid widespread restrictions on activity, similar to the lockdown restrictions seen this spring, saying such limits are not worth the economic cost.

But such decisions are typically handled by local leaders in America, some of whom, such as the mayors of El Paso, Texas and Newark, New Jersey, tightened rules on Monday.

Over the last week, the number of new virus cases reported daily in the US has repeatedly passed 80,000, sending the seven day average to a new high of nearly 69,000 - roughly double what it was in September.

The number of hospitalisations has jumped 40 per cent in the past month and death rates are also rising, though more slowly.

On a per capita basis, the number of new cases in the US over the past seven days remains lower than some other countries, including the UK, Spain and France, which have announced new restrictions recently.

But analysts say the economy is unlikely to mend until concerns about Covid-19 are resolved.

Amid those strains, investors are also worried about the impasse in Washington over the need to fund additional coronavirus economic relief.

On Monday, Treasury Secretary Steven Mnuchin, who has been trying to broker a deal for the White House, said the two sides remained far apart. Congresswoman Nancy Pelosi, who leads Democrats in the House of Representatives made similar comments.

--IANS int/

( 466 Words)

2020-10-27-03:00:05 (IANS)

 
  LATEST COMMENTS (0)
POST YOUR COMMENT
Comments Not Available
 
POST YOUR COMMENT
 
 
TRENDING TOPICS
 
 
CITY NEWS
MORE CITIES
 
 
 
MORE BUSINESS NEWS
Inflationary woes: RBI retains rates, ma...
United States and India discuss IP-led s...
8 out of 10 people exhibit trust in adve...
Two arrested for GST fraud of Rs 118 cro...
Nifty, Bank Nifty gain for 5th straight ...
RBI stance powers equities rise, interes...
More...
 
INDIA WORLD ASIA
People of Telangana will stop BJP from e...
Maha Council biennial polls: MVA emerges...
We want to take tourism to Goa's remote ...
India to deploy enhanced capability boat...
Priyanka to have bases in Lucknow, Praya...
Yogi thanks people of 'Bhagyanagar' for ...
More...    
 
 Top Stories
Pixxel plans to have its satellite ... 
Consistent Sneha triumphs in 7th le... 
Jadeja ruled out of rest of T20I se... 
Anti-Mujib sculpture procession in ... 
Why Raj govt is silent over health ... 
Criminal held following encounter w... 
Resolution passed against holding l... 
UK, EU trade talks put on hold due ...