Stock markets around the world fell on Monday amid fears that a growing closure in China’s Covid could cause a global slowdown in supply and economic growth.
About £ 40 billion was withdrawn from the stock price on the FTSE 100, which fell 1.9 per cent as impending restrictions in Beijing caused panic.
The Chinese capital has to conduct mass testing of most of its 21 million citizens and has imposed blockades on individual homes and one part of the city.
Although only 70 cases have been found since the outbreak last week, authorities have imposed austerity measures under China’s approach to fighting the “zero Covid” virus.
Chinese stocks have fallen the most since the pandemic began, while European stocks have fallen to their lowest level in more than a month.
Economists warn that the world’s second-largest economy may already be in recession with possible repercussions worldwide.
Wall Street was more ambiguous: Twitter shares helped lift the Nasdaq after the announcement of its purchase of Ilona Mask.
Oil companies Chevron Corp and ExxonMobil fell more than 3 percent each, while oil companies Schlumberger NV and Halliburton Co. fell nearly 9 percent each. The S&P 500 materials index fell 1.75 percent and utilities lost 2 percent.
“Earnings will be crucial to the thinking of the average investor. The tutorial was: buy Apple, buy Netflix, buy Google and throw away the key, but this tutorial no longer works, ”said Jake Dollarheid, CEO of Longbow Asset Management. “What are the prospects for these companies?”
Investors were also in suspense earlier in the week when companies such as Google-parent Alphabet Inc, Microsoft Corp., Amazon.com Inc and Apple Inc, released quarterly results.
The grim results of the pandemic of the beloved Netflix along with rising bond yields last week have hit high-rise stocks, with Nasdaq’s technology losses since the beginning of the year being around 18 per cent.
Reuters contributed to this report
Shares are falling as fears grow about the impact of Covid’s draconian closure in China
Source link Shares are falling as fears grow about the impact of Covid’s draconian closure in China