Global Markets Mixed amid COVID-19 Delta Variant Concerns
Major US indexes ended mixed amid concerns over the covi-19 delta variant on the US Economy. The Dow closing 0.3%, the S&P 500 off 0.09% and the Nasdaq adding 0.16%. The 10-year US treasury yields had only a minor change as investors digested the jobs data and comments from the Federal Reserve while awaiting key inflation readings later this week. The yields on benchmark slipped 14 basis points to 1.3152. The US dollar index is up at 92.970, seeing a 4-month high, buoyed by an upbeat US data, even as traders kept a close watch on the spread of covid-19 cases in the United States.
Asian markets traded sideways at open today, as concerns over the spread of the covid-19 delta variant and expectations of earlier tapering by the Federal Reserve offset strong corporate earnings. China’s CSI 300 is recovering to be 0.43% higher. Japan’s NIKKEI edges higher by 0.22%, set for the best week since May-end on strong earnings. In Hong Kong, the Hang Seng index was 0.78% higher. Australia’s ASX is up by 0.32% on the back of strong earnings results, despite the nation’s most populous state recording its sharpest daily increase in coronavirus cases.
Steep losses in energy stocks held back gains in London’s blue-chip index on Monday. The FTSE 100 index ended 0.1% higher on gains in defensive sectors, including consumer staples and healthcare, while mining stocks recovered from early losses. Energy companies weighed the most on the index, with Royal Dutch Shell and BP falling 0.8% and 0.7%, respectively. The Italian FTSE MIB added 0.54%. At the same time, France’s CAC 40 – 0.06%, and Spain’s IBEX 35 – 0.15%.
Germany stocks were mixed after the close on Monday, as gains in the Utilities, Technology and Pharmaceuticals & Healthcare sectors led shares higher while losses in the Retail, Industrials and Media sectors led shares lower. At the close in Frankfurt, the DAX fell 0.10%.
The Russian stock market closed in an optimistic mood, despite the falling oil. The Moscow Exchange index grew by 0.78% to 3835.11 points. The RTS index increased by 0.5% to 1641.07 points.
The cost of common shares of Sberbank on the Moscow Exchange increased by 1.44% and reached 323.73 rubles, reaching a new all-time high since May.
Oil prices recovered on Tuesday after falling as much as 4% in the previous session, which extended last week’s steep losses amid a rising US dollar and concerns that new coronavirus-related restrictions in China could slow a global revival in fuel demand. US crude oil futures were trading at $66.98 per barrel, up $0.5. Brent crude was at $69.37, up $0.33. The yellow metal remained close to multi-month lows, thanks to a strengthening dollar and increasing bets that the US Federal Reserve will begin asset tapering sooner than expected.