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Wall Street head stocks for a back-to-back slide

Wall Street head stocks for a back-to-back slide

Global stock markets fell on Tuesday, and luck was most closely linked to the stocks that were most closely linked to the reopening of the global economy.

The S&P 500 index on Wall Street, which peaked last week, fell 0.9 percent and was on its way to the first declines since the end of March. The technology-based Nasdaq Composite fell 1.3 percent.

Shares of travel and leisure companies caused a global setback as coronary virus cases continued to rise in Europe. Goldman Sachs estimates that the share index will “get the most out of the opening scenario” by more than 3 percent, shares of Marriott International hotel operator fell nearly 5% and American Airlines fell 6%.

Bank and financial stocks also slipped after the European Central Bank made an assessment of credit conditions in a pandemic-stricken bloc.

While declines occur is expected have a quarterly earnings season. U.S. business chips are projected to deliver quarterly earnings growth of about 25% annually. coronavirus.

Trevor Greetham, Royal London’s investment strategist, said Trevor Greetham, Royal London’s investment strategist, still has little room for further improvement with high equity valuations and expectations that this profit season would be huge.

“Traveling with bags often is better than getting there,” he added.

European stocks also fell on Tuesday, after questioning the region’s weak economic recovery, with a poll suggesting that bank lending in the bloc was declining.

The Stoxx Europe 600 index closed 1.9% and the UK FTSE 100 fell 2 per cent. The decline led to doubts about the sustainability of the region’s fragile economic recovery following the ECB survey.

A report by the central bank ahead of next month’s meeting on Thursday showed that European lending could fall access to credit in the second quarter of this year.

“This reflects the uncertainty of the banks in terms of the severity of the economic impact of the third wave of the pandemic”, ECB he said.

The ECB has pledged to spend 1.9 million euros on bonds, boosting purchases in recent weeks. However, analysts fear that politicians will not communicate properly that they intend to mitigate the impact of the health crisis.

After Thursday’s meeting, “we don’t expect to hear anything incentive from the ECB,” said Nadège Dufossé, head of cross-asset management at Candriam fund manager.

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Bank of America analysts also predicted that the ECB would have “no additional guidance for the coming months.” This, he said, could leave “room for market concern before the June meeting” that “the risk of a policy mistake cannot be ruled out.”

US government bonds strengthened as shares fell. The 10-year Treasury yield, which moves in the opposite direction of its price, fell 0.04 percentage points to 1.56 percent.

Profitability has affected borrowing costs, which have risen from about 0.9 per cent since the start of the year, and is highly sensitive to expectations about the central bank’s future interest rate decisions.

The U.S. dollar rose 0.2 percent against the peer basket, but has remained near its lowest level since early March. The euro was flat against the green dollar at $ 1.2030, while the sterling lost 0.4 percent against the dollar to trade at $ 1.3931.

Crude Brent was down 0.7% at $ 66.57 a barrel.

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