Global stocks and US futures slide on Covid-19 fears

Global stocks and US futures slide on Covid-19 fears. Global stock markets and US futures retreated on Thursday as a second wave of coronavirus cases triggered more restrictions in Europe and negotiations in Washington over financial assistance for struggling workers and businesses remained deadlocked.

S&P 500 and Dow futures declined by more than 1%, and Nasdaq futures shed 1.8%. Germany’s (DAX) dropped over 3% in early daytime trading, and France’s CAC 40 (CAC40) dipped 2.5%. The FTSE 100 (UKX) posted losses of 2.4% in London. Hong Kong’s Hang Seng (HSI) led Asian markets lower, shutting down 2.1%.

Long stretches of negotiations between Republicans and Democrats on another significant stimulus package for the US economy have failed to produce results, and hopes are fading that a compromise can be reached before the presidential election on November 3.

Treasury Secretary Steven Mnuchin talked with House Speaker Nancy Pelosi for around an hour on Wednesday, but he said significant issues remain unresolved including how much money ought to be spent. Getting a deal before the election will be “difficult,” Mnuchin said.

Milan Cutkovic, a market analyst at Axi, said that hope for new stimulus measures had been keeping optimism “alive” on Wall Street. But the mood has changed.

“Investors have now accepted that there will be no deal between the Republicans and Democrats over the stimulus package in the imminent future,” said Cutkovic.

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