Covid-19 can spoil party in equity markets
- Re-surging cases of covid -19 raises fear of Second Wave of infection around the world.
- China closes some parts of Beijing after 45 people found positive for corona virus.
- U.S. is seeing sudden spike in corona cases after easing of lock down activities.
- Global equities have already seen heavy selling on Thursday.
- Asian markets are trading weak at opening trades.
- SGX is in neutral zone this morning.
Why recent rally is under threat on re-surging Covid-19 cases around the world?
- A sudden spike in covid 19 cases can be seen all around the world threatening second wave of infection. No nation has the potential now to lock down their economies again. As already the World economy is now weak and unemployment graph at peak. People are now dying with poverty and stand still economy need a push to be on track to economical recovery. In case, second wave of infection spread than thing will become worst. As already 7.98 million people were infected with infection and 435000 died.
- China has closed some parts of Beijing after 45 people tested corona virus positive and chances of more people of getting infected as testing is going on. This can put economical breaks again and may result in second wave.
- Some U.S. states like Texas, California, Florida and other states have seen sudden spike of corona virus cases. This can be seen by sudden spike in hospitalization rates.
- Thursday already we have seen worst performance of equities indices all around the world. All major indices had fallen sharply lower on the back of this reason. In case things get worst than further correction can’t be ruled out.
- Dow Jones Industrial Average increased by 477.37 points, or 1.90%, close at 25,605.54.
- The S&P 500 gained by 39.21 points, or 1.31%, ends at 3,041.31.
- Nasdaq Composite Index decreased by 96.08 points, or 1.01%, close at 9,588.81.
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- India is seeing a sudden spike in corona virus cases with new 12000 cases registered on Sunday. Total infected people in our country now stands at 3.2 lakhs. The worst hit states are Maharashtra, Delhi, Gujarat and Rajasthan. The worst part is the cases are expecting to increase further and Delhi can see cases at around half million by the end of July, prediction made by medical practitioners.
- SGX Nifty is suggesting a cut of more than 0.48% at present time (7.51 a.m.). Indian Markets will start at around 9,500 level. With this fall, the risk of downside has opened in near future in Indian Markets.
- Today nifty outlook is negative for the day. Traders should be cautious while opening trades on the long side. Have a look on You tube video to understand technical charts:
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