In reduced trade, with China and Japan on vacation, US equity futures fell 1.7% and American crude fell 7%. The safe haven US dollar hit week-long highs against risk-sensitive Australian and New Zealand dollars. The South Korean KOSPI fell, the Hong Kong Hang Seng returned from a two-session trip down 3.5%, while the Australian ASX 200 gained 0.5%.
US President Donald Trump and Secretary of State Mike Pompeo have added to concerns with new efforts to blame the pandemic on China, where the new coronavirus epidemic is believed to have originated.
The latest salvo came from Pompeo on Sunday, which said there was “a significant amount of evidence” that the virus had emerged from a laboratory in the central city of Wuhan in China.
Pompeo did not provide any evidence or challenge a conclusion from US intelligence that the virus was not of human origin. But comments are doubling on Washington’s pressure on China as death and economic damage increase in the United States.
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FTSE 100 LIVE: Asian stocks fell on Monday
Oil prices have fallen
Update 10:55 am: FTSE has broken down
The FTSE 100 index at 10:45 a.m. was down 26.91 to 5,736.15.
10.33 am update: “Balance between physical and economic health”
Joshua Mahony, senior market analyst at IG, a world leader in online commerce, said: “Today’s recovery from the FTSE 100 is in flagrant contradiction to the huge declines evident in continental European markets this morning.
“At the end of a period of optimism at the idea of an economic reopening throughout Europe, we now see fears arise as to the potential reaction of the market if such a decision finally results in a second wave and a subsequent block.
“Without a vaccine, it seems very likely that leaders must choose a balance between physical and economic health. “
10am update: FTE 100 update
The FTSE 100 index at 9.45 a.m. is down from 10.32 to 5752.74.
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Global stock markets struggled on Monday
9:55 am update: South African economy paralyzed
South Africa’s economy could contract by 12% and the unemployment rate would increase for more than a third of the workforce due to the impact of the coronavirus.
The Director General of the National Treasury, Dondo Mogajane, said: “Anything between minus 7% and up to 12% could be the impact (on GDP). We need to focus on the post-virus environment so that we can contain the impact… it’s going to be huge.
“We could even reach 40% unemployment if things go the way they are. The manufacturing industry is impacted. The mining sector is impacted. The service sector is impacted. Look at tourism for example, it is on its knees. “
9:18 am update: the pound is falling
The pound fell to its lowest level since Wednesday evening, pulled by a stronger dollar as Sino-US relations deteriorated, but it did wipe out some losses in London’s early trade on Monday.
Against the dollar, the pound was last at $ 1.2452, after falling 0.4% since the close of New York on Friday.
He recovered somewhat between 7 a.m. and 8 a.m. at the opening of London, before falling back.
The pound was broadly flat against the euro at 87.81 pence.
US locked out for coronavirus
8:45 am update: decrease in the FTSE 250 index
The domestic-oriented FTSE 250 index fell 0.9%, dropping 1.9% on Friday.
8:33 am update: FTSE broken down
The FTSE 100 index at 8:15 a.m. was down from 32.11 to 5,730.95.
8:16 am update: UK markets plunge
British equity markets fell on Monday as tensions between the United States and China rose again over the origin of the coronavirus.
Rolls-Royce dropped 4.2 percent to bottom of FTSE 100 after source said plans to cut workforce down to 15 percent as customers cut production and airlines aircraft were parked due to a stop in world travel.
The top-notch FTSE 100 lost 0.7%, dropping 2.3% on Friday when U.S. President Donald Trump blamed China’s pandemic and threatened new fares.
China relaxes lock restrictions
Update 8:01 am: FTSE 100 opens
The FTSE 100 index opened at 5763.06.
7:48 am update: FTSE 100 update
The FTSE 100 index at 7.44 am was unchanged at 5763.06.
7:43 am update: start of trade negotiations between the United Kingdom and the United States
Trade talks between the UK and the US are slated to open on Tuesday despite the ongoing coronavirus pandemic.
The Secretary of International Trade, Liz Truss, and the United States Trade Representative, Robert Lighthizer, will meet by videoconference, while about 100 representatives from both countries will listen.
It is understood that the first round of negotiations is expected to last approximately two weeks, while other rounds will take place approximately every six weeks.
7:31 am update: European stocks collapse
Futures on the STOXX 50 euro fell 3.3% at 7:13 a.m., suggesting an unfavorable start in May after the STOXX 600 gained 6% in April.
German equity futures fell 3.2%, while the French CAC 40 fell 3.2%. FTSE futures fell 0.4%.
7:03 am update: FTSE futures contract down
FTSE futures fell 0.6% and European stocks looked set to return from a May 1 break with a slump. Futures on EuroSTOXX 50 fell 3%.
6:18 am update: the activity of the Asian factory devastated in April due to a coronavirus
A series of IHS Markit purchasing managers’ indexes (PMIs) plunged deeper into contraction from March, some plunging to historic lows and others reaching levels last seen during the crisis 2008-2009 global financial reporting.
Similar gauges from Europe’s largest economies, expected Monday and later in the week, should also show the conditions for global industry.
The PMI for South Korea, Asia’s fourth largest economy and a world manufacturing power, tumbled to 41.6 in April, the lowest level since January 2009. Japan’s PMI released last week also fell to a 11-year low.
“The bad news is that the industry’s success in many places is unlikely to be the worst,” wrote Alex Holmes, Asian economist at Capital Economics, in a note.
“Global demand has dropped and we do not think it has bottomed out. The latest incoming data for the United States and Western Europe indicates an unprecedented drop in demand. And while the Chinese economy has started to recover, demand remains very weak. “
Economies around the world are crippled by coronavirus
Update 5:56 am: Oil prices drop due to trade tension between the United States and China
Oil prices fell in early trade Monday, reducing gains from last week, fearing that the global oil glut would persist, as trade tensions between the United States and China could dampen an economic recovery, even if Blockages of the coronavirus pandemic are beginning to ease.
The US CLc1 West Texas Intermediate (WTI) crude oil futures contract fell to $ 18.32 per barrel and fell $ 1.46, or 7.6%, to $ 18.27 at 12:08 p.m. GMT . The benchmark contract increased 17% last week.
Brent LCOc1 futures fell 90 cents, or 3.4%, to $ 25.54 after hitting a low of $ 25.53. Brent crude rose about 23% last week after three consecutive weeks of losses.