US equity markets tumble on fears about the spread of the Delta variant of COVID-19 and the effects it may have on the economy.
The Dow Jones Industrial Average falls 2.19 percent, to 33,927 points; the S&P 500 index fell 1.78 percent, at 4,250 units, and the Nasdaq lost 0.99 percent, at 14,284 points.
“On Wall Street they are pointing towards a negative opening of the markets due to concerns that a rebound in Covid-19 cases will slow down global economic growth,” said Vector analysts.
They added that “COVID cases have recovered this month and the delta variant has spread among the unvaccinated. “The US has an average of almost 30 thousand new cases per day in the last 7 days ending on Friday, compared to a 7-day average of around 11 thousand cases per day a month ago.”
“Stock markets start the week with negative movements where investors show concern about the impact that the rebound in COVID-19 infections could have, due to the highly contagious ‘delta’ variant, and inflationary pressures on the global economic recovery” , Banorte analysts pointed out
In the case of the stock exchanges in Mexico, the Price and Quotation Index (IPC) falls 2.64 percent, to 48,822 points. Meanwhile, the FTSE BIVA yields 2.98, to 1,998.33 units.
In Mexico the Timely Indicator of Economic Activity was published. For May, they estimate an advance of 0.6 percent per month, with a revision to the industry, but lower services. For June they anticipate 0.3 percent compared to the previous one, with strength in services despite worse conditions on COVID-19.
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