The Dow Jones drove off a cliff on Thursday, unable to cope with the week’s barrage of covid-19 reality checks.
Following on from yesterday’s dire OECD and Fed double whammy, the US markets had to deal with news that another 1.542 million Americans filed for unemployment last week. That’s better than forecast and the lowest number since mid-March. However, it takes the total number of claims over the past 3-ish months to a staggering 44 million – that really puts last Friday’s nonfarm jobs gains into perspective.
On top of that the Dow et al. are contending with reports that the number of coronavirus cases in the US has now crossed the 2 million mark. In fact, Texas just posted its highest number of covid-19 hospitalisations since the pandemic reached American soil, amplifying fears of a second wave.
In response the Dow Jones dove 880 points, screaming all the way down. It now is barely keeping its head above 26100, mere days after striking a 15-week peak of nearly 27600.
With the US markets freaking out, the already hefty European losses levelled up. The DAX dropped 3.6% to hit 12100, with the CAC plunging a staggering 4% to just above 4850.
The FTSE, meanwhile, sank 200 points to 6125 – and it likely would’ve been even worse if the pound wasn’t also down 0.8% against dollar and euro alike. Sterling has hit the brakes on its recent rally, the currency bowing under the pressure of no-deal Brexit speculation.
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