Global stock markets fall

World Grigory Matyunin 04-May-2020
ID 159130152 © Maximusnd | Dreamstime.com
ID 159130152 © Maximusnd | Dreamstime.com

Global stock markets declined on Monday due to the ongoing impact of coronavirus-related lockdowns as well as deterioration in Sino-American relations following clashes concerning the virus’s origins. Concerns have been raised about the prospect of a new trade war leading to greater risk aversion. The dollar has risen and gold prices have increased.

Global production has been stifled and demand slashed by ongoing lockdowns throughout the world. Factories throughout Europe and Asia have continued to reduce activity.

Risk-averse trading has resulted from the possibility of new tariffs, the adverse effect upon supply chains and consequent decline of global economic growth.

Wall Street has shown mixed results. Dow Jones Industrial Average .DJI fell by 120.01 points whereas Nasdaq Composite .IXIC gained 46.68 points.

Stocks of airline companies have plummeted.

The dollar has increased against other currencies, rising 0.272 percent. The renewed quest for safe havens, amid fears of new tariffs and economic warfare, has also resulted in a rise in gold prices.