The stock markets rallied worldwide in the previous week. However, they ended in the red on Monday as the coronavirus cases continue to rise. President Donald Trump stated on Sunday that social distancing measures would be extended at least one more month in the U.S. He hopes that the country will recover by June 1.
On Friday, Trump signed a $2 trillion stimulus package to help American workers, businesses, and industries struggling during the pandemic. As a result, stocks on Wall Street ended the session with significant gains. The Dow Jones even managed to exit the bear market territory, rising more than 20% from its recent low.
Central banks and lawmakers around the globe made progress on measures to boost economies weakened by the coronavirus. But as the pandemic continues and the countries stay in lockdown, the stocks have begun declining again.
U.S. stock futures fell on Monday. The Dow Jones was last down by 0.8%. S&P 500 futures dropped 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.
What about the Asian stocks?
The Asian futures fell along with the U.S. stocks. Japan’s Nikkei 225 lowered by 3.7%, while Hong Kong’s Hang Sang Index dropped down by 1.3%, and China’s Shanghai Composite declined by 0.9%.
European shares haven’t fared much better. Germany’s DAX decreased by 1.4% in early trading on Monday, while France’s CAC 40 dropped by 2.4%. The FTSE 100 also slid by 2.3% in London.
Analysts expected that last week’s rally would be short. Margaret Yang, an analyst with CMC Markets, noted 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.
Furthermore, Oil prices plummeted down due to the prospect of further disruption to the U.S. economy and a continued price war between Saudi Arabia and Russia. Brent crude futures, the global oil benchmark, fell by 8.6%, the last trading at $22.79 per barrel. U.S. oil is also down by 5.8%, currently trading at $20.27 per barrel.