Spreadex | Oct 28, 2020 05:19
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.
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.
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