- Markets turn risk-off on worries of overheating as virus continues to spread
- Germany sees coronavirus 40,000 deaths despite harshest restrictions
- COVID-19 cases resurge in China
KEY EVENTS
The dollar surged and Bitcoin plunged on Monday as US futures contracts, including on the Dow, S&P, NASDAQ and Russell 2000 slipped from records posted by underlying benchmarks, while European stocks retreated from 10-month highs.
Traders attribute the selloff to profit-taking amid spiking coronavirus cases in Europe, as well as China reporting its biggest daily increase in cases in five months, which hit energy and mining shares.
GLOBAL FINANCIAL AFFAIRS
The seesawing market narrative once again swung from optimism on COVID-19 vaccines and US fiscal stimulus to pessimism of unsustainable valuations amid a global pandemic that seems to only get worse with time.
In Europe this morning, the STOXX 600 Index dropped 0.4% but was off earlier 0.6% lows, after Germany—the continent’s economic steam engine—suffered 40,000 deaths despite imposing some of the harshest pandemic restrictions. Oil producers BP (LON:BP), Royal Dutch Shell (AS:RDSa) and Total (PA:TOTF) sold off after China—the world’s biggest oil importer—announced a lockdown in Shijiazhuang, the Hebei province's capital and the epicenter of the new outbreak.
The dollar rallied after US yields, including on the 10-year Treasury note, jumped, rewarding savers, but weighing on dollar-denominated commodities and mining stocks.
Bitcoin suffered a free-fall of nearly 16% from Friday’s close.Bitcoin Daily
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