(Reuters) – Wall Street’s main indexes fell sharply on Monday as concerns about the pace of the global recovery weighed on sensitive stocks in the economy in a week the Federal Reserve may decide to scale back its pandemic-era stimulus plan.
Ten of the 11 largest sectors of the Standard & Poor’s Index fell in this session. Industrial, financial and energy-exposed stocks fell between 1.6% and 3.2%.
The banking sub-index lost 2.9%, after a dip in Treasury yields as investors rushed into the safety of bonds amid concerns about a default by Chinese developer Evergrande.
Tech giants like Microsoft, Alphabet, Amazon.com, Apple and Tesla, which tend to outperform their peers in times of economic uncertainty, made between 0.6% and 2.8%.
Wall Street’s main indexes were hit in September by concerns about the impact of higher corporate tax rates on earnings, ignoring signs that inflation may be peaking in the United States. The S&P 500 is on track to end a streak of seven consecutive monthly gains.
Meanwhile, on Wednesday all eyes will be on the conclusion of the Federal Reserve’s monetary policy meeting, when the central bank can lay the groundwork for a gradual cut in stimulus, despite the consensus that the announcement has already reduced your bond purchases. Stay for the November or December meetings.
At 4 pm (Brazilian time), the S&P 500 lost 2.72% at 4,312 points. Euro Stoxx 50 lost 2.11% to 4,043.63 points.
European indices fall due to difficulties facing China Evergrande
(Reuters) – European shares fell sharply on Monday as growing concerns about the solvency of property group China Evergrande frightened investors at the start of a week packed with major central bank meetings.
The FTSEurofirst 300 Index lost 1.7% to 1749 points, while the European STOXX 600 Index lost 1.67% to 454 points.
Mining stocks lost 3.6%, reflecting lower commodity prices.
Asian stocks closed lower after a sharp crash in Evergrande, the world’s most indebted developer.
“More important from a global markets perspective is the troubling plight of large Chinese developer Evergrande, which appears to be on the brink of fears of contagion to the Chinese economy in general. This is particularly bad news for miners,” said Ross Mold, president of the company. An investment officer at A.J. Bell.
The European benchmark STOXX 600 has fallen for three straight weeks on fears of slowing global growth, rising inflation, ever-rising Covid-19 cases, and contagion from tougher regulations on Chinese companies.
The Federal Reserve’s monetary policy meeting will be in focus on Tuesday and Wednesday, as the Fed is expected to pave the way for stimulus cuts. In total, 16 central banks will meet this week, including Brazil, the United Kingdom and Japan.
In London, the FTSE fell 0.86% to 6,903.91 points.
In Frankfurt, the DAX index fell 2.31% to 15,132.06 points.
In Paris, the CAC 40 index fell 1.74% to 6,455.81 points.
In Milan, the Ftse/Mib index fell 2.57% to 25,048.26 points.
In Madrid, the Ibex-35 index fell 1.20% to 8,655.40 points.
In Lisbon, the PSI20 index fell 1.62% to 5,213.55 points.
