JULY 20, 2021
The experts at Vector Casa de Bolsa agree that “the markets are concerned that a rebound in the cases of Covid-19 will slow down world economic growth,” the same media reports.
Against this background, yesterday’s trading session closed in the red:
– The Dow Jones Industrial Average (New York) fell 2.09% to 33,962 points, its biggest loss since October 2020.
– The S&P 500 (NY) index fell 1.58% to 4,258 units, and percent, its biggest drop since last May.
– The Nasdaq (NY) index lost 1.06% to 14,275 points.
– The Index of Prices and Quotations (IPC) of the Mexican Stock Exchange (BMV) lost 2.10% to 49,096 points.
– The FTSE BIVA (Mexico) yielded 2.11% to 1,007 units.
– The stock markets of Europe and Asia registered falls of between 2 and 1% respectively.
This is the rise of Covid-19 that has the world economy in suspense
This month, Covid-19 cases are on the rise in several countries, especially the Delta variant , which has spread among unvaccinated people.
In the United States a month ago, an average of 11,000 cases were counted per day, while in the last 7 days almost 30,000 new cases were counted daily.
In Mexico , on June 20, the weekly average of new coronavirus cases was estimated at 3,301. Today, a month later, the figure has risen to 10,124 daily infections.
In the case of the United Kingdom , this Monday most of the restrictions imposed by the pandemic expired, following the reopening plan of Prime Minister Boris Johnson. However, the long-awaited return to normality is threatened by a new wave of Covid-10, since 54,000 new infections were reported in the country on Saturday and more than 47,000 on Sunday.
In Thailand , 11,778 cases were reported in the last 24 hours, marking a record in the country since the start of the pandemic. Also in Singapore , the highest number of daily infections was recorded for 11 months.
In Tokyo , home of the 2021 Olympic Games (they were going to be 2020, but we already know what happened), 1,410 new cases were registered, a maximum since last January. Of these, 5 were detected inside the Olympic Village just a few days after the inauguration of the expected event.
Oil also suffered a crash
After two consecutive weeks of volatility, as Saudi Arabia and the United Arab Emirates resolved a dispute, over the weekend the Organization of the Petroleum Exporting Countries (OPEC) and its allies (OPEC +), agreed to increase joint monthly oil production by 400 thousand barrels per day during the last five months of 2021.
West Texas Intermediate (WTI) is trading at $ 66.34 per barrel, representing a 7.62% drop, the biggest drop since last September.
The increase of 400 thousand barrels a day per month in the supply will keep the market in deficit in the coming months, said Miguel Orea, Director of Investments at Aurea Capital Markets. In addition, he considers that prices may “continue to decline in the coming weeks” to reach $ 64.81 per barrel.
The specialist explained that fears about the spread of the Delta variant caused oil to collapse along with the stock markets, since a new wave could stop the demand for crude oil and the economic recovery.