Subscriber Notice: This newsletter will resume at 0300 GMT Thursday. India markets are closed on Wednesday, July 21, in observance of Bakri Id. GLOBAL MARKETS DJIA 33962.04 -725.81 -2.09% Nasdaq 14274.98 -152.25 -1.06% S&P 500 4258.49 -68.67 -1.59% FTSE 100 6844.39 -163.70 -2.34% Nikkei Stock 27482.97 -169.77 -0.61% Hang Seng 27421.41 -68.37 -0.25% Kospi 3229.88 -14.16 -0.44% SGX Nifty* 15724.00 -17.5 -0.11% *July contract USD/JPY 109.56-57 +0.10% Range 109.57 109.42 EUR/USD 1.1798-801 0.00 Range 1.1805 1.1790 CBOT Wheat Sept $6.976 per bushel Comex Gold (July) $1808.70 -0.32% Nymex Crude (NY) $66.30 -$5.51 U.S. STOCKS
The Dow Jones Industrial Average declined more than 700 points on Monday-its worst session since October-as anxiety mounted over the spread of the Delta coronavirus variant and its potential impact on the global economy.
The Dow ended the day down 725.81 points, or 2.1%, at 33962.04, its worst day in almost nine months. The S&P 500 fell 68.67, or 1.6%, to 4258.49. The technology-heavy Nasdaq Composite declined 152.25, or 1.1%, to 14274.98, its fifth consecutive losing session. Monday's losses marked an acceleration after U.S. stock indexes retreated last week, snapping a three-week winning streak.
Despite Monday's selloff, the S&P 500 is up more than 13% this year and closed at a record just one week ago.
ASIAN STOCKS
Japanese stocks were broadly lower, dragged by sharp falls in energy, transportation and real-estate stocks, as renewed concerns about the Covid-19 pandemic led to selloffs on the Wall Street overnight. Covid-19 infection trends were being closely watched ahead of the Tokyo Olympics scheduled to open later this week. The Nikkei Stock Average was down 0.9% at 27392.05.
South Korea's Kospi was down 0.6% at 3223.61 in early trading, tracking the fall in U.S. stocks as the spread of the Covid-19 Delta variant makes investors doubt the global recovery. Travel, energy and internet stocks led the South Korean benchmark's fall. Stricter coronavirus restrictions were in place in South Korea because of the fast-spreading Delta variant. USD/KRW was higher on risk-averse sentiment, sapping appetite for equities.
Hong Kong stocks were lower in early trade, as the market continued to pull back from last week's gains. The benchmark Hang Seng Index was 0.3% lower at 27410.52. KGI Securities expected the downturn to extend further in the near term, as concerns rise about a resurgence in Covid-19 infections globally and investor risk-taking sentiments weakened. The brokerage put the initial support level for HSI at 27162.
Chinese stocks were mixed in morning trade, extending a range-bound trend started late last week. The benchmark Shanghai Composite Index lost 0.6% to 3518.28, while the Shenzhen Composite Index shed 0.3% to 2444.38. The ChiNext Price Index, a measure for emerging industries and startups, was the only gainer, adding 0.4% to 3462.85 on the back of biotech stocks. Wanlian Securities expected the current weakness to persist amid rising uncertainties over the Covid-19 Delta variant and global inflation concerns. The brokerage advised investors to focus on sectors with strong policy support, such as tech and telecom.
FOREX
The U.S. dollar strengthened 0.1% against the euro and weakened 0.5% against a broadly stronger yen that likely firmed due to investors looking for safety on fears spurred by the spread of the Delta variant of the coronavirus. The WSJ Dollar Index gained 0.3%. The Dow fell more than 2% Monday in its worst session since October, 10-year Treasury yields fell below 1.2% and Wall Street's fear gauge, the VIX, jumped 22% as investors shed risk.
METALS
Gold futures marked a second-straight decline on Monday, amid some strength in the U.S. dollar and a sharp, global selloff in equities, partly prompted by renewed concerns about the spread of the Covid-19 delta variant. August gold GCQ21 GC00 edged down by $5.80, or 0.3%, to settle at $1,809.20 an ounce, following a loss of 0.8% on Friday.
OIL SUMMARY
Oil prices slid Monday, recording their biggest one-day drop in 10 months as investors worried that the spread of the Delta variant of coronavirus will halt travel and dent demand for fuel.
U.S. crude futures tumbled 7.5% to $66.42 a barrel, their worst day since early September. Prices are now more than 10% below last week's multiyear peak, a drop that marks correction territory. They are still up sharply for the year.
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(END) Dow Jones Newswires
07-19-21 2316ET
