The stock markets ended Monday’s session in the red after the short rally last week. The Asian futures fell sharply over the day. Japan’s Nikkei 225 declined by 3.7%, while Hong Kong’s Hang Sang Index tumbled down by 1.3%, and China’s Shanghai Composite slid by 0.9%.
European shares also lowered significantly. Germany’s DAX fell by 1.4% in early trading on Monday, while France’s CAC 40 plummeted down by 2.4%. Meanwhile, the FTSE 100 lowered by 2.3% in London.
The markets rallied around the globe in the previous week, but as the coronavirus cases continued to multiply, they declined again. However, it doesn’t come as a surprise. Analysts expected that last week’s rally would be short.
Margaret Yang, an analyst with CMC Markets, stated that the false rally in a super bear market wouldn’t last for too long, as investors continued to evaluate an escalating pandemic situation and deteriorating economic conditions.
What about U.S. stocks?
The U.S. futures gained significantly during the last rally. But President Donald Trump stated on Sunday that social distancing measures would be extended at least one more month in the U.S. After this announcement, stocks fell rapidly.
Before that, Trump signed a $2 trillion stimulus package to help American workers, businesses, and industries struggling during the pandemic on Friday. As a result, U.S. stocks ended the session with significant gains. The Dow Jones Industrial exited the bear market territory, rising more than 20% from its recent low.
However, the countries and businesses stay in lockdown as the coronavirus outbreaks continue. Even though central banks and lawmakers worldwide made progress on measures to boost weakened economies, their efforts still aren’t wholly sufficient.
U.S. stock futures declined again on Monday. The Dow Jones was last down by 0.8%. S&P 500 futures fell by 0.6%, with Nasdaq futures shedding 0.5%. With more than 143,000 cases confirmed, the U.S. currently has more coronavirus cases than any other country in the world.
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