Dow Jones falls by 900 points – Corona fears hit US stock markets violently

Coronavirus-Mutation-SarsCov19

Wall Street is about to slide again. This is due to the increasing number of infections in the USA and the associated restrictions on public life. The current reporting season is taking a back seat in view of the Corona crisis. An impending setback for the economy is driving investors out of the US stock market. The Dow Jones index lost 3.4 percent to 26,521 points, the S&P 500 lost 3.5 percent to 3,271.15 points. The technology-heavy Nasdaq fell 3.7 percent to 11,004.87 points. In Europe, the Dax fell by 4.2 percent and the EuroStoxx50 by 3.5 percent due to speculation on new lockdowns. “Regardless of whether you call it a sequel or a new wave – the coronavirus pandemic is the biggest worrying factor right now,” said Art Hogan, chief investment strategist at asset manager National Securities. “Until we get past them, it’s hard for investors to imagine better economic times.”

At the same time, around a week before the US presidential election, there are no signs of a new stimulus package, said investment strategist Michael Hewson from brokerage firm CMC Markets. He doesn’t expect additional help until the end of the first quarter of 2021 at the earliest. The polls are causing uncertainty anyway, although surveys suggest a victory for Democratic challenger Joe Biden over incumbent Donald Trump, said Naeem Aslam, chief market analyst at brokerage firm AvaTrade. “Investors have learned from their mistakes and don’t rely on surveys because they are unreliable.” Against this background, the volatility index Vix, which measures the nervousness of investors, rose temporarily to a four-and-a-half-month high of 40.52 points. At the same time, investors fled to “safe havens” like US bonds. The world’s leading currency was also in demand. The dollar gained 0.6 percent. In times of crisis, investors would continue to prefer the greenback to other currencies, it said. The very firm dollar made gold more expensive for investors outside the dollar area, as a result of which the price of the troy ounce fell by 1.5 percent to 1,876 dollars. Oil prices slipped even more sharply: the price of a barrel of US WTI light oil dropped 5.1 percent to $ 37.32, while the European reference oil of the Brent variety was 5.5 percent lower at $ 39.09.

The fear of a further tightening of the pandemic restrictions hit the leisure and tourism values ​​particularly hard. Papers from casino operators like Wynn, airlines like American Airlines or cruise operators like Carnival by up to 10.6 percent. Boeing also came under selling pressure. The aircraft manufacturer is posting losses for the fourth quarter in a row after a slump in sales. The numbers are largely in line with expectations, but the Airbus rival still has a long way to go, commented analyst Cai von Rumohr of asset manager Cowen. Boeing papers were 4.5 percent cheaper. The shares of General Electric (GE), however, rose 5.4 percent after the Siemens competitor presented encouraging quarterly results. The analysts of the research house Gordon Haskett interpreted the numbers as further evidence that the conglomerate has bottomed out.

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