World News | Stocks Slide on Concern About Pace of Economic Recovery
Get latest articles and stories on World at LatestLY. Global stock markets tumbled Thursday after the Federal Reserve signaled a long path to recovery from the devastation of the coronavirus pandemic and amid reports of rising numbers of coronavirus infections in many countries.
Tokyo, Jun 11 (AP) Global stock markets tumbled Thursday after the Federal Reserve signaled a long path to recovery from the devastation of the coronavirus pandemic and amid reports of rising numbers of coronavirus infections in many countries.
In the US, Texas and Florida were among the states reporting jumps in the number of coronavirus cases after precautions were relaxed last month. The total number of US cases has surpassed 2 million.
Globally, India reported a record number of nearly 10,000 new coronavirus cases over the past 24 hours with health services in the worst-hit cities of Mumbai, New Delhi and Chennai becoming swamped by the rising infections.
In South Korea, the latest 45 new cases came in a weekslong resurgence that health authorities said they fear might develop into a massive wave. Such developments have raised alarm, said Stephen Innes of AxiCorp.
“After all, a secondary outbreak is nothing to sneeze at as traders remain in a state of risk limbo watching risk assets for signs of continuation or stall,” Innes said in a commentary.
Wall Street was expected to add to losses from the previous day, with Dow futures down 2.4 per cent and S&P 500 futures down 2.1 per cent. New weekly figures for US jobless claims are expected to once show another rise of over a million people.
In Europe, France's CAC 40 was 2.6 per cent lower at 4,923 and Germany's DAX dropped 2.6 per cent to 12,203. Britain's FTSE 100 fell 2.4 per cent to 6,179.
Japan's benchmark Nikkei 225 sank 2.8 per cent to close at 22,472.91, while Australia's S&P/ASX 200 skidded 3.1 per cent to 5,960.60.
South Korea's Kospi dropped 0.9 per cent to 2,176.78 and Hong Kong's Hang Seng slipped 2.3 per cent to 24,480.15. The Shanghai Composite shed 0.8 per cent to 2,920.90.
The outlook for a recovery from the worst downturn in decades is uncertain as states and countries push ahead with reopenings from pandemic shutdowns.
Brazil, Mexico, South Africa, India and Pakistan are among countries easing tight restrictions before their first outbreaks have peaked and before establishing detailed surveillance and testing systems to keep the virus under control.
Health experts have warned that could ultimately have devastating consequences.
The Federal Reserve emphasized Wednesday that the central bank will keep providing support to the economy by buying bonds to maintain low borrowing rates. It forecast no rate hike through 2022, which could make it easier for consumers and businesses to borrow and spend enough to sustain an economy depressed by business shutdowns and high unemployment. (AP)
(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)