Global Stock Markets Hit by New COVID-19 Lockdowns


World stock markets fell Tuesday as fears resurfaced over a spike in coronavirus infections around the world, dealers said.

Europe's stock markets were up to around 1.5 percent down, with London doing better than most despite grim UK output data.

Wall Street was a touch weaker at the opening bell as global sentiment was hit by the reimposition of some containment measures in parts of the United States, Australia and Hong Kong.

"The shutdown fuels fears that the growing number of coronavirus cases will hamper the fragile economic recovery," said City Index analyst Fiona Cincotta.

California, the richest of the US states, ordered all indoor restaurants, bars and movie theaters to re-close, while churches, gyms, shopping malls, hair salons and non-essential offices have been told to shut up shop in several densely populated counties, including Los Angeles.

The measures follow new restrictions imposed in Texas, Arizona, Florida and other major states.

The British pound slid on data showing that the virus-plagued UK economy shrank by almost a fifth in the three months to April.

A weaker British currency tends to boost share prices of companies listed in London who earn much of their income in dollars.

World oil prices fell further on speculation that top crude producing nations will agree to taper their output cuts at an expanded OPEC+ meeting this week.

News that Singapore's economy, considered a regional barometer in Asia, contracted a mind-boggling 41 percent in the second quarter also provided a stark reality-check for traders on Tuesday.

- Key figures around 1335 GMT -

London - FTSE 100: DOWN 0.5 percent at 6,144.06

Frankfurt - DAX 30: DOWN 1.5 percent at 12,605.02

Paris - CAC 40: DOWN 1.7 percent at 4,970.35

EURO STOXX 50: DOWN 1.6 percent at 3,298.23

New York - Dow: DOWN 0.3 percent at 26,015.73

Tokyo - Nikkei 225: DOWN 0.9 percent at 22,587.01 (close)

Hong Kong - Hang Seng: DOWN 1.1 percent at 25,477.89 (close)

Shanghai - Composite: DOWN 0.8 percent at 3,414.62 (close)

West Texas Intermediate: DOWN 2.0 percent at $39.31 per barrel

Brent North Sea crude: DOWN 1.5 percent at $42.10

Euro/dollar: UP at $1.1371 from $1.1344 at 2100 GMT

Dollar/yen: UP at 107.34 yen from 107.29 yen

Pound/dollar: DOWN at $1.2506 from $1.2556

Euro/pound: UP at 90.94 pence from 90.35 pence 

Comments 0