Multi-Month Lows For Dow Jones, FTSE And DAX As Markets Remain Wracked With Covid

The markets started to replicate yesterday’s trading as Tuesday went on, with Europe especially looking worse for wear after another round of bruising covid-19 headlines.

Initially flat, the Dow Jones avoided the kind of panic seen in Europe, keeping its losses at a comparatively light 0.5%. Nevertheless, that sees the US index at 27,550, its worst price in almost exactly a month, and around 1400 points off of the month’s highs.

A lack of incoming stimulus, rising covid-19 case numbers, the impending election and some rough earnings releases – Caterpillar (NYSE:CAT) fell 3.3% after revealing a 54% decline in Q3 earnings – left the Dow unable to shake of its recent malaise.

And with the Dow down, the European indices didn’t stand a chance. Increasingly fearful of the impact the latest round of pandemic restrictions will have on the economy, investors once again rushed to the exit door.

The CAC led the retreat, slumping 1.9% to hit 4720. The DAX, which lost more than 400 points by Monday’s close, shed another 1.2%, taking it below 12,050 for the first time in 4 months.

And the FTSE, which had spent much of the morning protected by HSBC (LON:HSBA), eventually succumbed to a 1% decline, tumbling to 5730, its lowest price since the start of May. With HSBC’s gains cut from 6% to 3.4%, the rest of its banking stocks in the red, and a worried look in the faces of its commodities, the UK index couldn’t withstand the pull of the market’s current trajectory.

"Disclaimer: Spreadex provides an execution only service and the comments above do not constitute (or should not be construed as constituting) investment advice or recommendations, or a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any person placing trades based on their interpretations of the above comments does so entirely at their own risk. Spreadex Ltd is a financial and sports spread betting and sports fixed odds betting firm, which specialises in the personal service and credit area. Founded in 1999, Spreadex is recognised as one of the longest established spread betting firms in the industry with a strong reputation for its high level of customer service and account management.

In relation to spread betting, Spreadex Ltd is authorised and regulated by the Financial Conduct Authority. Spread betting carries a high level of risk to your capital and can result in losses larger than your initial stake/deposit. It may not be suitable for everyone, so please ensure you fully understand the risks involved."

Original Post