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Wall Street will have its worst day in nearly a month on Tuesday, as investor sentiment has deteriorated early due to the sell-off in the Chinese stock market and worsened by weaker-than-expected US retail sales.
The blue-chip S&P 500 Index fell 1% in the afternoon in New York, the biggest drop since mid-July. The technology-focused Nasdaq Composite Index fell 1.2%, the biggest drop in three months.
The day after the S&P 500 Index hit a record high, Doubled The low point set during the market turmoil in March 2020.
Compared with June, US retail sales fell 1.1% in July, which was lower than the 0.3% drop expected by economists surveyed by Bloomberg.
Pantheon Macroeconomics chief economist Ian Shepherdson (Ian Shepherdson) said that these numbers are not as bad as they appear on the surface, and there may be several one-off factors that have an impact.
He said: “It is impossible for us to distinguish the impact of the weakening of the stimulus measures from the possible blows of the Delta variant. Delta Air Lines began to affect real-time indicators such as the number of restaurants and airline passengers in late July.” “August. The delta shock may be even greater, so we must drastically reduce our hopes for consumption in the third quarter.”
The data comes from a survey conducted by the University of Michigan, which showed a sharp drop in consumer sentiment Early this month.
Federal Reserve Chairman Jay Powell delivered a speech on Tuesday, but did not comment on monetary policy. On Wednesday, investors will pay close attention to the release of the minutes of the Fed’s last policy meeting to gain insight into the Fed’s plan to curtail expansionary policies to stimulate the US economy.
The yield on the US 10-year Treasury note, which is inversely proportional to the price, fell slightly on Tuesday afternoon. The yield on benchmark bills fell by 0.01 percentage point to 1.25%, the third consecutive day of decline.
On the other side of the Atlantic, the Stoxx 600 index in Europe is almost the same as the Dax index in Germany. The French CAC 40 index fell 0.3%.London’s FTSE 100 index closed up 0.4% as investors cheered miners’ restructuring plan BHP Billiton Group, The second largest company in the index.
In Asia, Hong Kong’s Hang Seng Index fell 1.7%, and China’s CSI 300 Index fell 2.1%. Auto company Geely and technology groups Tencent and Alibaba’s stocks fell the most in Hong Kong, all falling by at least 3%.
At the same time, after New Zealand Prime Minister Jacinda Ardern announced the implementation of a three-day lockdown after the discovery of the first case of community transmission of the coronavirus, the New Zealand dollar exchange rate against the US dollar fell 1.6% to US$0.691. Since February.
The unrest in the Asian market underscores that some traders and investors are increasingly uneasy about the slowdown in China’s economic growth and the spread of the coronavirus delta virus.
Oil prices fell on Tuesday because there is growing concern that the increase in Delta versions will weaken travel demand. The global benchmark Brent crude oil closed down 0.7% to US$69.03 per barrel. The US benchmark West Texas Intermediate crude oil fell 1% to US$66.59 per barrel.