Weak retail data, Wall Street slides on concerns about delta spreads


Washington / London — Tuesday’s global stock market was shaken by disappointment in US retail sales data and a surge in global COVID-19 infections caused by the Delta variant.

Investors have digested data showing that U.S. retail sales were higher than expected in July after global stocks fell amid concerns over China’s tightening of regulations on the Internet sector. , Dropped sharply.

The Dow Jones Industrial Average fell 0.7% in early trading, while the S & P 500 fell 0.53% and the Nasdaq Composite fell 0.65%. The MSCI World Equity Index, which tracks equities in 45 countries, fell 0.68 percent.

The Commerce Department reported a 1.1% drop as US retail sales exceeded expectations in July and supply chain disruptions weighed on car purchases. Rebounds are expected as parents go shopping before returning to face-to-face school in the fall, but there is growing concern that an increase in COVID-19 cases could undermine the world’s largest economic enthusiasm. ..

Mike Loewengart, Managing Director of Investment Strategy at E * TRADE Financial, said: “Obviously, the surge in delta variants is causing short-term anxiety … the jury is discussing how Americans will continue to use it.”

Deutsche Bank analysts said the market impact of the events in Afghanistan on developed countries has been limited so far.

“Instead, the long-term risk is that Afghanistan could become a refuge for terrorist groups, and such attacks have historically had serious market impacts on their own.” They said.

DAX graph on the stock exchange
The German stock index DAX graph was taken on August 16, 2021 on the Frankfurt Stock Exchange in Germany. (Staff / Reuters)

According to Deutsche Bank, another risk from the events in Afghanistan could complicate the passage of US President Joe Biden’s economic proposal and the possibility of another battle over debt caps in the coming weeks. Is to have.

Risk aversion among investors was seen in safe haven gold, which continued its winning streak for five days. Spot gold prices rose 0.26% to $ 1,791.94 per ounce. US gold futures rose 0.2% to $ 1,793.30.

Benchmark 10-year Treasury yields were obtained after weak data on retail sales and were 1.253 percent after reaching the lowest level since August 5 in previous trading.

The US dollar also rose, rising 0.34% to 92.937.

Investors are focusing on when the Federal Reserve will curb monetary easing policy within minutes of the central bank’s latest meeting scheduled for Wednesday.

Federal Reserve Bank of Boston Governor Eric Rosengren said on Monday that the central bank’s requirements to begin cutting asset purchases on Monday could be met with a strong job increase in another month.

Brent crude finally fell 0.19% to $ 69.38 a barrel. US crude finally fell 0.46% to $ 66.98 a barrel.

Pete Schroeder and Tom Arnold