Monday, October 25

Why global stocks fell, despite the agreement for the second stimulus package in the United States

Despite the bipartisan agreement on the new stimulus package in the United Statesglobal stocks fell on Monday, on fears of the new strain of coronavirus detected in the UK.

And it is that financial markets were expected to react positively to the agreement new $ 900 billion stimulus package to which the Republican and Democratic leaders arrived.

But that deal has been clouded by concerns unleashed by the rapid spread of the new strain of coronavirus, in the southeast of England.

International markets react

He Dow Jones , he S&P 500 and the Nasdaq they fell from 1.6% to 2.4%. Their reaction was not positive despite the stimulus package deal, as it outweighed concerns about the new strain of coronavirus, which is affecting the population. tourist industry, more this Christmas season.

And is that already several countries, starting with those of the European Union they have closed their borders to flights from the United Kingdom.

Similarly, several countries of Latin America they are doing it, the first of them was El Salvador.

Concerns about new strain of coronavirus

These concerns increased as US legislators reached an agreement on the new stimulus package that provides for the direct delivery of a second check for $ 600 dollars, unemployment support, among other programs that are at risk of disappearing next 31 from December.

And it is that the concern of the new strain of the coronavirus, detected in the United Kingdom shook the international markets, for example the FTSE 100 index of Great Britain registered a fall of 3%.

Meanwhile he Euro Stoxx 50 registered a decrease of 3.6% and the Germany DAX index fell 3.6%.

At the same time, that the pound sterling registered a fall of 2% against the dollar.

Other indicators with marked decline were AIG with 11%, the operator of cruceros Carnival with a 10% decline, and flight operator Tui and jet engine maker Rolls-Royce fell between 7% and 9%.

Oil prices fall

While oil prices also fell, Brent fell 5.4%, and West Texas Intermediate fell 5.6%.

Asian financial markets also suffered a crash from the new strain of the UK coronavirus, but mainland China was able to avoid the red.

The Shanghai Composite Index reported a rise of 0.7%.

Meanwhile, Japan’s Nikkei index fell 0.2% and Hong Kong’s Hang Seng fell 0.7%.

We must wait for the reactions of the international markets, after the new stimulus bill is put to the vote in the United States Congress.

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