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On June 30, 2021, workers make truck parts at a plant in Qingzhou, Shandong Province, China.
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Global markets fell on Wednesday, capping off a relatively positive first half of the year. Investors weighed new data suggesting a slowing of China’s recovery against continuing concerns about an infectious strain of Covid-19. Stock futures in the United States plummeted in lockstep with European stocks.
Asian equities ended the day with a mixed bag.
The Nikkei 225 index is a Japanese stock market index.
According to FactSet, the economy is slowing, with the first half of 2021 ending just under 5% higher. China’s
The CSI 300 index is a rating system for companies.
increased 0.6 percent, with a first-half gain of roughly 3.5 percent. In June, an official measure of factory activity in China fell, hampered by chip and power supply bottlenecks, while nonmanufacturing growth slowed as Covid-19 cases rose. On Wednesday, investors may be concerned about the extremely contagious Delta strain of Covid-19. In a letter to clients, Ipek Ozkardeskaya, senior analyst at Swissquote, stated, “The delta variation is now circling the world at an alarming rate, thwarting the expectations of economic recovery once again.”
The
The Stoxx Europe 600 index is a stock market index that measures the performance of
was under pressure, falling 1% as banks and automakers suffered losses. In the first half of the year, the index was expected to gain roughly 13%. German jobless claims fell by 38,000 in June, compared to a 20,000 drop predicted by experts polled by The Wall Street Journal. Following another record session for the S&P 500, U.S. stock futures have likewise fallen.
S&P 500 Index
and
The Nasdaq Composite Index
Investors were able to put away some concerns about the Delta variation as a result of strong economic data. According to FactSet, the S&P 500 is expected to gain 8% in the second quarter and 15% over the next six months.
On Wednesday, the June ADP private-sector jobs report and pending home sales will be released, bringing economic statistics back into focus. The nonfarm payroll statistics for June, however, will be the most important data point for investors. Didi, a Chinese ride-hailing company that priced its IPO at $14, will begin trading on the New York Stock Exchange on Wednesday under the ticker DIDI.
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