Global stocks slide as relief from COVID-19 vaccine quickly wears off with US imposing new restrictions


  • Global stocks slipped Thursday as investor optimism over a COVID-19 vaccine was dashed by new measures aimed at curbing the spread of the virus in the United States.
  • New York State will see several new measures take effect starting Friday, just two weeks before Thanksgiving.
  • The FTSE 100 slipped 0.4% after data showed the UK economy saw record growth of 15% in the third quarter, but an ongoing second lockdown means the next GDP reading could be bleak.
  • China’s dominant tech platforms have seen substantial declines after Beijing issued new anti-monopoly rules.
  • Visit the Business Insider homepage for more stories.

Global stocks fell on Thursday after investor hopes of a COVID-19 quickly faded as the United States imposed new restrictions on COVID-19 in New York City.

Futures contracts linked to the Dow Jones, S&P 500 and Nasdaq fell 0.5%, indicating a decline in major indices at the start of trading later.

The United States has recorded more than one million new cases of COVID-19 in the past 10 days. The country recorded a record 136,325 new cases on Wednesday, according to data from Johns Hopkins.

New York has seen at least 540,965 confirmed cases, with more than 30,000 deaths. New York Governor Andrew Cuomo has announced several measures that will take effect two weeks before the Thanksgiving holiday.

Cuomo has said further restrictions will follow if the virus goes unchecked, but it is resisting a full lockdown.

Pfizer’s positive results from its COVID-19 vaccine this week have led to some market rotation away from work-from-home stocks and into stocks more exposed to the health of the global economy.

A vaccine could mean there is less incentive for the Republican-controlled Senate to approve a broader fiscal stimulus package, said Eric Diton, chief executive of the Wealth Alliance.

Read more: Warren Buffett likely sold $ 4 billion in Apple shares and threw more Wells Fargo shares in the last quarter, Berkshire Hathaway expert David Kass said

The UK’s FTSE 100 fell 0.4% after data showed its economy grew to an all-time high of 15.5% in the third quarter, but a second lockdown could reverse its pace of growth.

The Euro Stoxx 50 fell 0.4% and the German DAX fell 0.5%.

China’s dominant tech platforms fell between 5% and 9% on Wednesday after regulators issued new anti-monopoly rules.

Assuming China applies these rules, UBS expects a short-term impact on the sector, but suggested investors take a more nuanced view before taking action.

< p style = "font-weight: 400; ">” Markets remain sensitive to headlines and the risk of incremental regulation in other technology segments, both of which could add to the pressure in the near term, “said Mark Haefele, chief investment officer at UBS Global Wealth Management. « The earnings of several key companies in the coming days could offer more clarity on how companies will react and be affected by the new measures. ”

China’s Shanghai Composite fell 0.1%, Hong Kong’s Hang Seng fell 0.2%, but Japan’s Nikkei was up 0.6%.

Oil prices came under pressure after the International Energy Agency said global demand would not improve significantly until 2021, even with a vaccine. The IEA’s comments echo those of OPEC, which lowered its demand forecast on Wednesday, citing an increase in COVID-19 cases and government lockdowns. Brent Crude and West Texas Intermediate edged down to $ 43.7 per barrel and $ 41.4 per barrel, respectively.

“The slow recovery in demand, coupled with the increase in production in countries that have not signed the agreement on production cuts, is likely to require strong action from OPEC +”, Commerzbank analysts said.

Read more: Buy These 13 Stocks That Offer Stable, Predictable Growth Without the Excessive Valuations of Big Tech, According to Credit Suisse


Please enter your comment!
Please enter your name here