Global stocks dive as some US states see spike in COVID-19 cases

first_img“The market got too far ahead of itself,” said Markets.com analyst Neil Wilson.In the US, stocks have followed a fairly unbroken path higher from the market’s worst days in March, fueled by optimism over the reopening US economy and the expected boost from aggressive stimulus measures approved in Washington.But US Federal Reserve Chief Jerome Powell offered a sober outlook on the US economy during a press conference Wednesday after the central bank signaled it planes to keep interest rates low for the next few years in light of the shaky recovery.Analysts also fixated on increasingly worrisome trends on new coronavirus cases in several states, including Florida, Arizona and Texas. After a rally lasting more than two months, Wall Street hit a stumbling block Thursday as spiking coronavirus cases in several United States states helped spur the worst sell-off since March, when market turmoil over COVID-19 was at its peak.The Dow Jones Industrial Average finished down 6.9 percent, a loss of more than 1,850 points, to 25,128.17, also weighed down by worries over excess valuations and another massive number of US jobless claims.Bourses in Paris, Frankfurt and London all plunged at least four percent. “Wrong direction,” the Houston Health Department in Texas said in a tweet Thursday that showed recent trends in the city. “If we don’t take the increasing #COVID19 cases seriously NOW, we may soon end up in a  deadly situation.”Wear a mask, social distance, wash hands & get tested.”LBBW’s Karl Haeling said “It’s concerning that a lot of states are seeing a spike in rates.””It’s hard to interpret whether that represents a real increase, or just the fact that more states are testing people now,” he told AFP.Too much optimism?Heading into this week, analysts had begun describing equity valuations as “frothy” following steady gains since March, saying they do not reflect the grinding recovery many economists anticipate.”We’ve been talking about the optimism trade for a while, and it just ran into some facts,” JJ Kinahan, chief market strategist at TD Ameritrade, said in a note.”The facts are we’re not fully reopened and businesses aren’t all the way back,” Kinahan said. “Basically, the market got out a little over its skis.”Losses were broad-based, but some of the worst affected sectors included banks such as Bank of America, down 10.0 percent, oil services companies like Halliburton, down 15.4 percent, and travel-oriented companies including United Airlines, down 16.1 percent and Marriott International, down 10.9 percent.Boeing dove 16.4 percent, hit by the pullback in the broader market as well as news that 737 MAX contractor Spirit AeroSystems had furloughed staff and halted work on the MAX at Boeing’s request. Spirit fell 15.6 percent.Back in Europe, shares in German airline Lufthansa also dived in Frankfurt by around 10 percent after the company said it would axe 22,000 jobs.Topics :last_img read more

Leinster give Cardiff the Blues

first_img O’Driscoll and Sam Warburton – two men who missed the Lions’ series-clinching win over Australia for contrasting reasons – made their seasonal bows in this round four clash. It was a veritable Lions reunion as seven of the 2013 tour squad were involved, with Jamie Heaslip, another third Test absentee, returning to captain Leinster. Brian O’Driscoll began his final season of rugby on a winning note as he helped Leinster claim a bonus point 34-20 win against Cardiff Blues at the RDS. Matthew Rees’ hacking on of a loose ball led to a foot race between Harry Robinson and Fergus McFadden with the latter forced to concede a five-metre scrum. Cardiff kept up the pressure and a subsequent infringement allowed Halfpenny to split the posts for a second time. Although Cardiff had some decent territory, Leinster showed more cutting edge and penetration when building their attacks and should have added to their tally before the break. A late O’Driscoll surge through the middle, which delighted the home crowd, created an opening but Rob Kearney was crowded out on the left wing. Leinster beat a path to the Cardiff line on the resumption, thanks to muscular carries from Heaslip and Martin Moore, and Blues lock Paulo paid the price for a needless dive over the top of a ruck. His sin-binning left Cardiff under pressure defending a five-metre scrum and worse followed as they collapsed an advancing Leinster set piece, leading referee Marius Mitrea to award a penalty try which Madigan converted. The Blues hit back with an early contender for try of the season. Bustling winger Cuthbert beat Rob Kearney on the outside and evaded the grasp of four more defenders from 40 metres out. Halfpenny’s conversion cut the gap to 20-13 before Leinster had a near miss, McFadden being held up in the right corner. Entering the final quarter, Leinster’s lead was far from comfortable and Robinson almost finished off a smashing counter from the Blues backs – Cuthbert’s final pass was ruled forward. Leinster turned down a kickable penalty – Devin Toner was held back after blocking a Lloyd Williams kick – and it proved the right decision as flanker Ryan crashed over on the end of a maul. Madigan converted and then bagged the bonus point for his side, stepping through a gap and barging through Halfpenny’s last-ditch challenge to touch down. Cardiff did manage a late consolation try with replacement Cory Allen intercepting a Jack McGrath pass to score, with Patchell drop-kicking the conversion. O’Driscoll created the first half’s only try for Sean Cronin, Leinster building a 13-6 interval lead with Ian Madigan and Leigh Halfpenny kicking two penalties apiece. Filo Paulo’s 47th-minute yellow card preceded a penalty try for Leinster, however a tremendous solo effort from Alex Cuthbert kept the Welsh side in the hunt. But Matt O’Connor’s men made certain of their first home victory of the campaign thanks to further tries from Dominic Ryan and man-of-the-match Madigan – who finished with 19 points. The visitors were smarting from a surprise home defeat to Zebre and made the early headway in Dublin, with Owen Williams and Cuthbert threatening out wide. Halfpenny was unable to land a tricky opening kick but his sixth minute penalty – awarded for a shoulder charge by Heaslip on his opposite number Andries Pretorius – had the Blues deservedly ahead. Rhys Patchell’s fine one-handed feed released Williams once more, but Leinster quickly turned defence into attack as their first serious raid downfield produced a try. Cardiff did well initially to haul down Rob Kearney, only for O’Driscoll’s superbly timed flat pass to send hooker Cronin slaloming through for a 13th minute score. Madigan supplied the conversion. Isaac Boss knocked on near the posts as the province probed for a quick second try, but the scoreline was beefed up by two well-struck penalties from Madigan, a player keen to impress in the number 10 jersey given newcomer Jimmy Gopperth’s strong start to the season. Press Associationlast_img read more