Monday market minute
- Global stock markets are slipping as the UK identifies a new COVID variant that triggers strict blocking orders for London and travel restrictions with the rest of Europe.
- Prime Minister Boris Johnson says the new variant is 70% more transferable than its predecessor and could already be active in other parts of the world.
- U.S. lawmakers agreed late Sunday on a $ 900 billion coronavirus aid package, with votes in both the House and Senate expected later today.
- The US dollar index rose overnight in defensive transactions, while gold reached a six-week high of $ 1,896.00 per ounce.
- Tesla shares slipped before the start of the S&P 500 after closing at a record $ 695 per share on Friday’s active trading.
- US equities indicate a sharp drop in the opening bell on Wall Street on Monday, heading into a shorter holiday week, which includes an early close on Thursday afternoon.
US futures fell sharply on Monday as the dollar rallied and gold traded at a six-week high as markets reacted to the discovery of a new, faster-spreading coronavirus variant in the UK. it could be more dangerous than its predecessor. .
Prime Minister Boris Johnson said the new strain could be 70% more transmissible and used his discovery to justify the new Christmas closing orders for London, which will close all non-essential shops and services and severely limit travel to and from London. capital.
Britain’s European neighbors have also adopted strict travel bans, with France closing key ports of entry and canceling all flight arrivals at UK airports, a move appropriate by most EU member states.
The discovery of a new strain COVID aims to offset market optimism for a $ 900 coronavirus aid package agreed by lawmakers in Washington last night that will eventually deliver $ 600 direct payments to American families and increase unemployment benefits by 300 of dollars. Congressmen will vote on the package today, with the Senate soon to follow.
However, futures contracts linked to the Dow Jones industrial average will fall more than 410 points at the beginning of trading on Monday, with those related to the S&P 500 at prices for a decline of 62 points. Meanwhile, Nasdaq Composite futures contracts show a withdrawal of 175 points.
As for the individual stock carriers, Tesla (TSLA) – Get the report shares were active before the start of the S&P 500, down 45% to indicate an opening bell price of $ 663.55 each after reaching a record high of $ 695.00 per share on Friday and closing with a value $ 658.8 billion market share.
Modern (mRNA) – Get the report Meanwhile, shares gained 1.3% in pre-market trading after the Food and Drug Administration issued approval for the emergency use of its coronavirus vaccine on Saturday.
The US dollar index, which tracks the green dollar against a basket of six global currencies, was up 0.8% higher in overnight trading at 90,727, while investors rushed for hedging amid securities linked to the UK isolation and the new London lockout, while the 10-year benchmark Treasury banknote yields fell to 0.908%.
Global oil prices also fell on the news, gross US contracts for February deliveries fell from $ 1.68 to $ 47.56 a barrel, and Brent contacts in the same month fell from $ 1.91 to 50, $ 35 a barrel.
European equities were also significantly weaker, down 2.5% from a 10-month high at trading since the beginning of the month, with Germany’s trade-sensitive DAX index down 2.8%.
The UK FTSE 100 was 2.2% lower on early trading in London, supported in part by a weaker pound, which fell by almost 2 cents against the US dollar to 1.3275.
Overnight in Asia, the Japanese Nikkei 224 closed the session 0.18% lower, at 26,714.42 points, while the MSCI index at the ex-Japan regional level fell by 0.7% in the last trading hours.