U.S. and European stock markets fall 650 points due to pandemic

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   [Related Reading] The pandemic rushes to the European and American stock markets. Fauci’s latest warning: The United States is very dangerous

   In the early morning of the 27th, Beijing time, US stocks closed sharply on Monday, and the Dow plunged 650 points, the largest daily decline since early September. The epidemic in the United States and Europe has worsened, and White House Chief of Staff Meadows said that the United States will not control the epidemic. The market is worried that the tightening of epidemic prevention measures by countries will lead to further shrinking of corporate business and global economic activities. There is little hope of reaching a fiscal stimulus agreement before the US election.

U.S. and European stock markets fall 650 points due to pandemic

   The Dow Index fell 650.19 points, or 2.29%, reported 27685.38 points; the Nasdaq fell 189.34 points, or 1.64%, to 11358.94 points; S&P 500 index fell 64.42 points, or 1.86%, to 3,400.97 points.

   The Dow once fell by more than 960 points, and the lowest fell to 27370.16 points.

   Boeing, Lockheed Martin and Raytheon Technology stock prices are under pressure. Due to the issue of arms sales to Taiwan, the Chinese Ministry of Foreign Affairs announced sanctions against these companies.

   White House Chief of Staff Meadows said in an interview with the media on Sunday that despite the surge in the number of confirmed cases of new coronary pneumonia in the United States, the United States “will not control the new crown epidemic.”

  Meadows said: “We will not control the new crown epidemic. We will obtain vaccines, find effective treatments and other mitigation methods.”

   When reporters asked why the United States did not control the epidemic Meadows said: “Because the new crown pneumonia virus is just a contagious virus like the flu”, he added that the Trump administration is “trying to contain” the coronavirus epidemic.

  Affected by the news of the epidemic, the aviation and cruise sectors generally declined.

   AstraZeneca’s stock price rose. According to reports, the new crown vaccine developed by the company and the University of Oxford has successfully caused a strong immune response in the elderly.

   UBS economist Paul Donovan said in a research report on Monday: “The market is always paying attention to economic news about the impact of the coronavirus epidemic on the economy. After France, Italy and Spain have adopted strict Curfew measures. For bars and restaurants, this is obviously bad news, but for supermarkets and the home entertainment industry, it is more beneficial.”    JP Morgan Chase Private Bank Investment Strategy Director David Stubbs said: ” The current situation of the epidemic in Europe and the United States is indeed worrying, and at the same time, the expectation of short-term epidemic lockdown during the winter period may also be included. But investors knew from the beginning that the current economic recovery will stop and go like this. Because until the health is completely resolved After the crisis, we can truly enter a new economic cycle.”

   The number of newly diagnosed cases in the United States has set a record, and experts say that the number of daily cases will exceed 100,000.

   Two days in the U.S. weekend The number of newly diagnosed cases of new coronary pneumonia in China hit record highs in succession. The number of new cases on Friday and Saturday exceeded 80,000. Western and Midwestern states were hit hardest by the epidemic.

   According to statistics from Johns Hopkins University in the United States, as of 8:24 am on October 26, Beijing time, the cumulative number of confirmed cases of new coronary pneumonia in the United States exceeded 8.63 million, reaching 8,632,200 deaths The number of cases is 225,212.

  Data shows that there were more than 94,000 new confirmed cases in the United States on the 24th, setting a record for the number of new cases in a single day since the outbreak in the United States. The number of newly confirmed cases of new coronary pneumonia in the United States on the 23rd reached 83,757 in a single day. Previously, the highest number of new cases in a single day in the United States was 77,362 reported on July 16.

   After the United States hit a new high of more than 83,000 new confirmed cases in a single day on the 23rd, on the 24th local time, the director of the Center for Infectious Diseases and Policy Research at the University of Minnesota warned in an interview with the media that the United States The number of newly confirmed cases in a single day may soon reach the six-digit figure, that is, breaking the 100,000 case mark, and the number of deaths will rise sharply in the next three to four weeks.

   Scott Gottlieb, former director of the U.S. Food and Drug Administration, also said in an interview with the media that the number of new deaths in a single day in the United States in the next few months may be “shocking “.

   The new confirmed cases of new coronary pneumonia in France on Sunday set a record. The country reported more than 52,000 positive cases within 24 hours. Beginning Friday, two-thirds of France has implemented the previously announced curfew.

   It is also reported that the French government this week is studying a series of plans to strengthen restrictions on the epidemic.

   The number of new cases in Italy last week hit a record high. Italy has imposed the strictest restrictions on the public since the company ended its blockade, including closing all bars and restaurants at 6 pm. The country is facing a severe epidemic with an explosive increase in the number of infections, with close to 20,000 new cases per day.

  In Spain, the government has declared a state of emergency throughout the country on Sunday, giving government departments greater powers to implement social distancing and emergency medical and health policies; the country declared a state of emergency in March this year. Spanish Prime Minister Sanchez said that a national curfew will be implemented immediately from 11 pm to 6 am, after 10 of the country’s 17 regions have requested.

   The U.S. election has entered the countdown stage. President Trump traveled to New Hampshire on Sunday to attend the rally. He pointed out that the epidemic in the United States is being reversed. Even without the new crown pneumonia vaccine, the situation will be reversed and the epidemic will pass.

   Trump pointed out at the meeting that the situation is turning around and the new crown pneumonia epidemic is ending. As for the number of domestic diagnoses to pick up again, Trump blamed testing. He also criticized his opponent and the Democratic presidential candidate Biden’s anti-epidemic proposals that would harm the economic recovery and emphasized that the United States will never become a socialist country and that this war must be ended. Many of the supporters present did not wear masks and did not maintain social distancing.

  The hope of reaching a new round of fiscal stimulus plan before the general election is slim

  As the epidemic worsens, many investors are hoping for a strong fiscal stimulus, but the general election on November 3 The hope of signing a new coronavirus aid bill in Washington is getting smaller every day.

   U.S. House of Representatives Speaker Pelosi and White House Chief of Staff Meadows successively accepted media interviews on Sunday, accusing each other of “changing orders and changing the regulations” on stimulating legislation, which makes the hope of reaching an agreement even thinner.

   Pelosi said that it is still possible to reach an agreement this week. She has sent Finance Minister Mnuchin the latest proposal on the rescue plan over the weekend and hopes to get an answer on Monday. Pelosi said that regardless of the outcome of the general election, she will still strive to reach an agreement after the November 3 election, but she hopes that a new round of federal financial assistance can be reached as soon as possible.

   Pelosi has been negotiating with Treasury Secretary Mnuchin recently, trying to reach an agreement that may be worth about 2 trillion US dollars before the presidential and congressional elections.

   Pelosi said on Sunday that Mnuchin is reviewing the latest plan text and she is waiting for a formal agreement with the White House.

   However, White House Chief of Staff Meadows said in a media interview on the same day that he has not yet seen the text of the proposed bill. Meadows said: “We are still proposing one proposal after another, and Pelosi is changing again and again.”

   He added that he has maintained contact with Senate Republicans and called the Senate majority party. Leader McConnell has agreed to bring any agreement into the Senate, “and pass it.”

   National Australia Bank foreign exchange analyst Ray Attrill said: “The hope of introducing a fiscal agreement before the general election fades and the epidemic The news and the possible implementation of stricter blockades, these factors combined are enough to hurt the stock market.”

  U.S. election countdown

   This week is the last week before the U.S. presidential election. It has now entered the ninth day countdown. Statistics show that the number of voters who voted early in the United States will exceed 65 million, twice the number of voters in the 2016 election.

   According to the latest polls, Biden currently leads Trump by 8% in the United States. Among voters who may vote, 51% voted Biden and 43% supported Trump.

   As far as the market is concerned, the US presidential election still affects traders. The market is digesting the possibility of Biden’s victory and the Democratic Party’s control of Congress, which will increase the possibility of larger government spending.

   NatWest Markets analyst team wrote in the report: “The Democratic Party’s victory is our basic forecast. We have raised the probability of this estimate from 40% to a little more than 50%. Biden’s expectation of winning has been raised from 65% to 75%. Under our basic scenario forecast, we expect the U.S. Treasury yield curve to steepen and the U.S. dollar may weaken.”

   focus stocks

   Software giant SAP’s stock price plummeted. The company’s third-quarter revenue fell 4% year-on-year, lowering its full-year performance guidance.

   It is reported that the European antitrust agency will clarify the transaction between Fiat Chrysler Automobile Group and PSA Group.

   Hasbro’s third-quarter net revenue was US$1.78 billion, a year-on-year increase of 13%.

   Tesla announced the initiative to recall the front suspension and rear linkage components of some ModelS and ModelX vehicles in China. According to a report from the US Securities and Exchange Commission, Tesla said its capital expenditures for the next two fiscal years are expected to increase to US$4.5 billion and US$6 billion, respectively.

   Google pays 8-12 billion U.S. dollars to Apple every year to make its search engine a preselected option for Apple devices.

  Haina International raised the AMD target price from US$85 to US$95.

   Wade Bush raised his Twitter target price from US$37.5 to US$47.

  Other markets

   The three major European stock indexes closed down across the board, and the German DAX index tumbled over 3.6%.

  Gold futures closed higher on Monday and recorded a 5th day gain in the past 6 trading days. The pandemic in the United States and Europe led to a sharp decline in global stock markets, and gold prices were supported. But the strengthening of the US dollar limits the price of gold.

   Analyst Jeff Wright said that due to the sharp decline in the US stock market and data showing that new home sales fell in September, the price of gold rose slightly during the trading day.

   He also believes that as the US presidential election date approaches, the uncertainty surrounding the outcome of the election has boosted the demand for safe-haven investment in gold. He said that if this situation continues, gold will be more favored by the market this week, and gold prices will receive greater buying support.

   The price of gold futures for December delivery on the New York Mercantile Exchange rose 50 cents, or less than 0.1%, to close at $1,905.70 per ounce.

   December silver futures closed down 25 cents, or 1%, to $24.42 per ounce.

   US WTI crude oil futures fell more than 3% on Monday, and hit the lowest closing price in more than three weeks.

   CMC Markets UK market analyst David Madden said: “The crude oil market is very sensitive to the outlook for global demand, and the surge in coronavirus infections in Europe and the United States has caused investors to panic.”

   He said: “While the demand outlook is deteriorating, the news of Libya’s increase in oil production has put more pressure on oil prices.”

   According to media reports, OPEC Secretary-General Barkindu virtualized at the Indian Energy Forum on Monday The meeting stated that the prospects for global economic growth and demand recovery are still “weak.”

   The price of West Texas Intermediate crude oil futures for December delivery on the New York Mercantile Exchange fell 1.29 US dollars, or 3.2%, to close at 38.56 US dollars per barrel. Calculated by the most active contract, 38.56 US dollars / barrel is the lowest closing price since October 2.

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