Further restrictions are imminent due to the omicron variant of the corona virus.
(Photo: Reuters)
Frankfurt, New York The fear of a damper on the global economy due to the rapid spread of the Corona variant Omikron is sending the US stock exchanges downhill. The Dow Jones Index, the broader S&P 500 and the Nasdaq technology exchange index each fell by almost two percent at the beginning of the week.
Due to the increasing number of corona infections worldwide, massive restrictions are threatening again in several European countries. The Netherlands is already in lockdown, Italy is considering new measures over the holidays and the UK hasn’t ruled out further restrictions before Christmas.
Germany is also facing further restrictions for vaccinated people. Fear of the consequences for the world economy depressed share prices worldwide. The Dax fell by up to three percent before it went 1.9 percent weaker with 15,240 points from trading. The EuroStoxx50 yielded 1.3 percent.
“Usually what happens in Europe is kind of a preview of what we’ll see in the United States,” said Chris Zaccarelli, chief investment officer at Independent Advisor Alliance. There is a threat of high stress on hospitals and a decreasing willingness to spend money. “This is definitely a cause for concern.”
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The pre-Christmas mood to buy on the stock exchanges also expressed the threat of the end of the billion dollar reform package from US President Joe Biden. US Senator Joe Manchin, like Biden a Democrat, said over the weekend that he would not support the $ 1.75 trillion investment law.
Burden threatening restrictions
The senator based his opposition on concerns about inflation. Because of the tight majority in Congress, the Democrats are dependent on Manchin’s vote. Regardless of the resistance in their own ranks, the reform package should be voted on at the beginning of January. Goldman Sachs, meanwhile, lowered its forecast for the U.S. gross domestic product in the first quarter of 2022.
The impending failure of the reform package and with it the end of the drastic increase in tax credits for electric vehicles contained therein caused problems for the manufacturers of electric cars. Tesla’s shares slipped more than three percent, Nio shares fell by around seven percent and Nikola shares fell by nine percent.
In addition, shares in the travel industry fell under the wheels. United Airlines stocks fell by four percent at the top. The shares of the cruise company Royal Caribbean were also listed weaker. At least 48 people tested positive for the corona virus on the world’s largest cruise ship operated by the shipping company.
US cinema operator AMC Entertainment had to give up initial profits in the course of trading and also turned into the red. A boost was initially provided by the fact that the new Spider-Man film “No Way Home” had one of the strongest debuts in Hollywood history over the weekend in the USA and Canada, despite the new Corona variant.
Meanwhile, the shares of the US paper manufacturer Verso, which the Swedish company BillerudKorsnas plans to take over for around 825 million Dallar in cash, shot up more than a third. The shares of the Swedish group, however, slipped from around eleven percent.
The Italian luxury group Zegna made a successful stock market debut on Wall Street. After the merger with a US special-purpose vehicle (SPAC), the shares rose around seven percent to just under $ 11.00 at the opening price on Monday. The company was valued at $ 3.1 billion. In view of the increasingly scarce and expensive raw materials, the noble men’s tailor is also considering a possible purchase of suppliers.
Look at further individual values
Moderna: According to a study, the Covid vaccine from Moderna is still effective against the rapidly spreading omicron variant after three doses. A booster dose of the vaccine is therefore the first defense in the fight against Omikron, announced the US biotech company on Monday. Modern stocks initially rise when they open on Wall Street, but then drop 3.6 percent in the wake of the overall market.
Novavax: The EU Medicines Agency (EMA) has cleared the way for the approval of the corona vaccine from the US manufacturer Novavax. The EMA announced on Monday in Amsterdam. After approval by the EU Commission, this will be the fifth corona vaccine in the EU. The shares of the pharmaceutical company initially rise by almost eight percent at the top, but are then down 5.4 percent.
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