On Monday, stock markets were largely lower, driven down by a drop in oil prices and worries about the economic impact of mounting infections from the highly contagious Delta strain of the new coronavirus.
“Oil prices have fallen again as the spread of Delta and the restrictions that come with it, particularly in China, is causing serious anxiety,” said Craig Erlam, an analyst at OANDA Europe.
“We’re seeing increases in a variety of nations, which will likely impact on the recovery in the coming months, just when it was starting to gather momentum.” London’s FTSE 100 closed the day in the black, nudging up by approximately 0.1 percent, but stock markets in Frankfurt and Paris fell.
On the opposite side of the Atlantic, the Dow and S&P 500 both fell short of new highs, finishing slightly down. The Nasdaq, which is dominated by technology, gained a little amount of ground.
Oil prices have been harmed by mounting fears about the Delta strain of the coronavirus, according to ThinkMarkets analyst Fawad Razaqzada.
“Rising instances and increasing lockdowns have had a direct impact on travel and consequently oil demand recovery,” said one analyst. Oil prices fell more than 2% on Monday.
The dollar’s performance against its main competitors was mixed.
This week’s key data include the consumer price index’s inflation reading on Wednesday and Disney’s results on Thursday.
Investors will also be watching for the Senate to approve a $1.2-trillion infrastructure measure sponsored by President Joe Biden, which passed a critical procedural vote on Sunday.
Bitcoin held steady on Monday after jumping more than 20% over the weekend to more above $45,000.
Analysts claimed cryptocurrencies were on the mend after being battered for weeks by Chinese measures to tighten down on the sector.