Monday’s market minute
- World stocks are dwindling as Britain identifies a new COVID variant that causes strict blockade orders in London and travel restrictions with the rest of Europe.
- Prime Minister Boris Johnson says the new variant is 70% more transmissible than its predecessor and may be active in other parts of the world.
- U.S. lawmakers agreed on a $ 900 billion coronavirus relief package Sunday afternoon, with votes scheduled in both the House and Senate for this afternoon.
- The US dollar index rises in overnight defensive trade, while gold reaches a six-week high of $ 1,896.00 per ounce.
- Tesla shares are ahead of the S&P 500 debut after closing at a record high of $ 695 per share in Friday’s active trading.
- U.S. equities futures point to a sharp drop in the opening bell on Wall Street Monday toward a reduced holiday week that includes an early close Thursday afternoon.
U.S. equities fell sharply on Monday as the dollar rose and gold traded up a six-week high as markets reacted to the discovery of a new variant of the coronavirus in the UK that would spread faster and 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 new Christmas closure orders in London that will close all non-essential shops and services and severely limit round trips from the capital.
Britain’s European neighbors have also enacted strict travel bans, with France closing key ports of entry and canceling all flight arrivals from UK airports, an action matched by most EU member states. European union.
The discovery of a new COVID variety aims to offset market optimism for a $ 900 coronavirus relief package agreed by lawmakers in Washington last night that will finally deliver $ 600 in direct payments to northern families -American and will increase unemployment benefits by $ 300. Congressional lawmakers will vote on the package today, and the Senate is likely to follow shortly after.
However, futures contracts tied to the Dow Jones Industrial Average will fall more than 410 points at the start of trading on Monday, with those tied to the S&P 500 at a price of 62 points down. Nasdaq Composite futures, meanwhile, indicate a 175-point decline.
In terms of individual stock moves, Tesla (TSLA) – Get the report shares were active before their debut on the S&P 500, falling 45% to indicate a bell opening price of $ 663.55 each after hitting an all-time high of $ 695.00 per share on Friday and closing with a market value of $ 658.8 billion.
Modern (MRNA) – Get the report the shares, meanwhile, gained 1.3% in pre-market trade after the Food and Drug Administration on Saturday issued an approval for an emergency use permit for the his coronavirus vaccine.
The US dollar index, which tracks the greenback against a basket of six world currencies, stood 0.8% higher at night trading at 90,727 as investors rushed to hedge. -is in the middle of headlines related to the isolation of the United Kingdom and the new closure of London, while at 10 years of reference Treasury yields fell to 0.908%.
World oil prices also fell on the news, with US crude contracts for February delivery falling from $ 1.68 to $ 47.56 a barrel and Brent contacts during the same month falling between $ 1.91 and $ 50.35 a barrel.
European equities were also significantly weaker, falling 2.5% from a ten-month high early Monday, with a German trade-sensitive DAX index falling 2.8%.
Britain’s FTSE 100 fell 2.2% lower in early London operations, supported in part by a weaker pound, which fell by about 2 cents against the US dollar to 1 , 3275.
Overnight in Asia, the Japanese Nikkei 224 ended the session 0.18% lower, with 26,714.42 points, while the MSCI index for the entire region fell 0.7% towards the last hours of negotiation.