Sunday, March 3, 2024
HomeEurope NewsDelta Variant Concerns Caused Significant Drops in London and European Stock Markets...

Delta Variant Concerns Caused Significant Drops in London and European Stock Markets | Wall Street Journal Stock Markets

Fear of rapid spread Delta variant of Covid-19 As investors worry that economic growth may slow down, the stock market decline on Thursday will hurt the global recovery.

Fearing that the economy’s rebound from the impact of the pandemic may have peaked and signs of a slowdown in China’s economy, shares of London and other European exchanges have fallen sharply after the Asia-Pacific market fell.

This FTSE Index The London Blue Chip 100 Index fell 120 points, or 1.7%, to close at 7030 points, the biggest one-day drop in three weeks. Retailers, mining companies, home builders, hotel companies and financial stocks led the decline.

The European Stoxx 600 index recorded the biggest drop in two months, down 1.8%, and the French CAC index fell 2%, the biggest drop since the end of April.

After the French government warned citizens, Spain’s Ibex fell 2.3% Object to travel to Spain or Portugal Vacation due to the increase in Covid-19 cases.

On Wall Street, the Standard & Poor’s 500 Index fell 1.5% from its latest record high in early trading, and then rebounded slightly. Financial stocks, mining companies, industrial and technology companies were hit.

Delta variants are already the main strain of Covid-19 in the United States, accounting for more than 50% of all new cases.Medical experts worry about this more contagious variant Bring serious risks Those Americans who have not been vaccinated may cause a surge in infections, thereby reversing the reopening of the economy.

Japan decides to host the Tokyo Olympics No audience Under the Covid-19 emergency, as the number of cases increased, market sentiment deteriorated.

Sign up for daily business today email

Think Markets analyst Fawad Razaqzada said that optimism about the sharp global recovery seems to have been replaced by moderate concerns that economic growth is approaching its peak and that central banks may slowly reduce emergency stimulus measures. “The increase in Covid-19 Delta variant cases is putting pressure on the prospects for recovery. Japan officially declared a state of emergency in Tokyo two weeks before the Olympics.”

Despite the rapid economic growth this year, there are signs that the rebound may have peaked. The US service industry slowed last month, while the growth of Chinese factories hit a four-month low, and the outbreak of Covid-19 in major ports disrupted trade.