FirstFT: Delta variants shock the global market


Good morning.This article is our live version First FT communication.Register our Asia, Europe/Africa or America A version sent directly to your inbox every working day morning

The threat of a variant of the Delta coronavirus hit global stock markets on Monday, making European stocks their worst trading day this year and causing US stocks to fall by more than 2%.

Commodity prices also fell, and investors turned to safe havens for government bonds. It helped push the 10-year U.S. Treasury yield to its lowest level in six months, expanding investor sentiment as concerns about uncontrolled inflation have given way to the spread of concerns about the persistence of U.S. economic growth. On the Delta variant.

The European regional Stoxx Europe 600 index fell 2.3% in the biggest one-day decline in 2021, and the London FTSE 100 index fell by the same amount. On the other side of the Atlantic, the S&P 500 Index fell more than 2%, then slowed down in afternoon trading, closing 1.6% lower.

The technology-focused Nasdaq Composite Index fell 1.1%. In terms of commodities, the international oil benchmark Brent crude fell 7.1% to US$68.38 per barrel.

The yield on the U.S. 10-year Treasury note, the global asset benchmark, fell 0.10 percentage points to 1.19%, the lowest level since mid-February. The yield on the 10-year German government bond fell to minus 0.39%, and the yield on the 10-year British government bond fell to 0.56%, both five-month lows.

As some serious anxiety about inflation has begun to fade this year, government bonds have been rising for several weeks. But Monday’s trend marked a significant acceleration in the decline in yields and a shift in tone, as bond yields were accompanied by stock sell-offs.

Mohammed Kazmi, Portfolio Manager of Union Bancaire Privée, said: “This is the market’s realization that we are moving from an obvious V-shaped recovery to a more uncertain recovery.” “Hopefully the vaccine will provide us with a final outcome. Now investors are looking at the UK. People are a little worried about reopening so aggressively while the number of cases is still so high.”

There are five more stories in the news

1. The U.S. accuses China of planning a global cyber attack
The White House and its Western Allies Blame the Chinese government Cooperate with criminal groups to carry out a wide range of cyber attacks, including an attack on Microsoft this year that affected tens of thousands of organizations.

2. Biden: Rising inflation will not weaken the US recovery Joe Biden tries to ease fear Rising inflation could hurt U.S. recovery And undermined his $4 trillion spending plan, saying that the government will remain vigilant against price increases and hope the Fed will take action when needed.

3. Hong Kong enterprises are afraid of China and the United States to suppress U.S. business groups stated that the Biden administration’s warning on the risks of operating in Hong Kong Make life more difficult In their response to China’s comprehensive security strikes.

4. The Tokyo Olympics was hit by new crown pneumonia cases and scandals The Tokyo dream runs smoothly before the opening ceremony of the Olympic Games on Friday Already broken Through statistics on Covid-19 infections, suspected rapes, bullying scandals and missing weightlifters.

5. Haiti’s interim prime minister agrees to step down
Since the assassination of former President Jovenel Moïse 12 days ago, the acting prime minister of Haiti has been in charge of national affairs. Agree to leave Under diplomatic pressure, transfer power to the opponent.

Coronavirus Digest

  • Singapore have Strengthen social distancing After reporting the highest number of cases since August 2020, restrictions have been implemented.

  • U.S. Centers for Disease Control and Prevention urged we Citizens from Monday to Avoid travel To United KingdomOn the same day, as part of Prime Minister Boris Johnson’s “Freedom Day”, the UK lifted all restrictions on social contact.

  • Canada Will start to fully allow U.S. tourist vaccinated Enter the country from the beginning of August and vaccinate travelers from other destinations a month later.

  • British British Prime Minister Boris Johnson said on Monday that individuals need to show Proof of two Covid-19 vaccines Enter nightclubs and other places where large groups gather.

  • This we Due to the new coronavirus case, the head of the country’s top public health agency warned that it is experiencing an “unvaccinated pandemic” Up 70% In the past week.

Follow our live coronavirus Blog with Sign up For us Coronavirus business update Learn more about Covid-19 news in the newsletter.

the day before

Leave this world Amazon founder Jeff Bezos Fly to space today, The anniversary of the first moon landing, and his brother Mark, 82-year-old pilot Wally Fink, and 18-year-old Dutch student Oliver Damen.

income Streaming giants Netflix, Philip Morris, UBS and Chipotle announce income Nowadays.

Cyber ??Security Hearing U.S. House of Representatives Energy and Commerce Subcommittee Have a meeting today Investigating the growing threat of ransomware, the White House blames China one day later Cooperation with criminal gangs Conduct a wide range of cyber attacks.

What are we still reading

Robotaxis: A fully automated “moon landing” solution? Since Google launched its self-driving car project in 2009, the biggest question facing the technology has been: Is it safe enough for large-scale deployment?right now The risks of robot taxis It does not lie in the success of complete autonomy, but whether their cost is enough to become a business case.

China is far from reaching superpower status Global military power is the reason for elevating the country to a superpower, but Beijing may not care about competing with the United States in this area. Gideon Rachman thinks.

India’s tech IPO boom tests investors’ appetite Takeaway app Zomato launched a A series of stock market debuts Indian start-ups hope that the crackdown on Chinese technology groups will prompt global investors to turn their attention to Indian technology products.

Iran sanctions America is Consider sanctions Iran is selling oil to the country’s main customer, China, as negotiators seek to revive the 2015 nuclear agreement. (Wall Street Journal)

Two reasons to doubt global prosperity Although economists expect the reopening of the global economy to roar in the next few quarters, there are two increasingly pressing reasons to question its intensity and duration: China and the United States. The two superpowers are the locomotives of global growth, but there are cracks in their economic engines. Ruchiel Sharma wrote.

Brazil’s Lula makes policy a mystery Since he returned to Brazilian politics in March, The Popularity of Luis Inacio Lula da Silva It has been rising. But some Brazilians want to know what the new President Lula will look like. He admitted that his thinking “changes with facts,” and in 2003 he changed from a leader of a socialist trade union to a head of a free economic management agency.

Luis Inacio Lula da Silva speaks at the Metal Workers’ Union in March. His allies insist that any third term is characterized by pragmatic transactions and progressive values ??© Victor Moriyama/Bloomberg

Financial Times Podcast

You can’t always get what you quantify From picking the best stocks to listening to earnings calls, artificial intelligence-driven systems are changing finance. But how big is the real return? What is the risk?At this episodeRobin Wigglesworth tells us how artificial intelligence is used for investment, what happens when programs must adapt to new risks, and what robots can learn from watching children play.

Newsletter recommended for you

Swamp notes — Expert insights into the intersection of money and power in American politics.registered Here

Trade secrets — A must-read book on the changing face of international trade and globalization.registered Here



Source link