Wednesday , October 21 2020

Dow Futures Plunge as Reeling Europe Descends Into Crisis, Crypto Coins News


Dow Jones Industrial Average (DJIA) futures struggled for traction in early trading Monday, pointing to a weak stock market open on Wall Street. The plunge follows European markets lower as a cocktail of problems push the eurozone into crisis.

What a way to start the week. In a matter of hours on Monday morning, Thomas Cook filed for bankruptcy, German manufacturing went into contraction, and the euro collapsed against the dollar.

Dow futures tumble 40 points

At 5. 41 am ET,Dow Jones Industrial Average (DJIA) futurestraded 38 points lower. Despiterenewed hopes for trade war negotiations, stocks futures were unable to find positive territory.

Dow Jones Industrial Average (DJIA) futures fell on Monday after a cocktail of bad news out of Europe. Source: Yahoo Finance

S&P 500 futuresalso fell 0. (% while the tech-heavy) Nasdaq Composite futureswere flat.

Thomas Cook files for bankruptcy

Major UK travel operator Thomas Cook threw in the towel andfiled for bankruptcyon Monday morning. Last-minute talks with creditors and investors proved fruitless and the company declared insolvency.

All bookings, flights, and tours were immediately cancelled. The UK government was forced to step in to rescue an estimated 150, 000 holiday-makers stranded abroad in what it called the “largest repatriation in peacetime history. ”

The UK governmentrefusal to bail out the company, however, is telling. After the backlash from the 2008 bank bailout, governments know that public bailouts are political suicide. As the UK and Europe teeter on the edge of recession it’s a warning to companies: there’s no safety net this time.

Dow shaken by Germany manufacturing collapse

To throw fuel on the fire, Germany’s manufacturing industrywent into contraction on Monday. Germany’s PMI dropped below 50 – a psychological barometer for the health of the industry – for the first time since October 2012.

The drop is more than analysts were expecting and points to a contraction in German output. As the largest EU economy, the ripple effects are being felt throughout the eurozone. The German DAX index immediately fell 1.5%, pulling the Euro Stoxx 50 with it.

Euro gets crushed against the dollar

At the same time, the eurocrashed below $ 1. 10 against the dollar. Traders are anticipating that Mario Draghi and the European Central Bank (ECB) will be forced to add yet more stimulus on the back of Germany’s manufacturing crisis.

The euro fell sharply against the dollar as Germany’s manufacturing output fell into contraction. Source: Bloomberg

All this despite the fact the ECBcut rates deeper into negative territorylast week and restarted its quantitative easing

The collective European crisis on Monday is weighing heavily on Dow futures on Monday and hints at a weak open on Wall Street.

September 23, 2019 10: 11 AM

Brave Browser
Read More
Payeer

About admin

Check Also

Azerbaijan and Armenia agree to a pause in fighting – CNN, CNN

Azerbaijan and Armenia agree to a pause in fighting – CNN, CNN

(CNN)Azerbaijan and Armenia agreed to a "humanitarian ceasefire" in the conflict over the contested enclave of Nagorno Karabakh on Saturday -- one week after truce brokered by Russia fell apart, according to a statement from the foreign ministries of both countries.The new agreement -- set to start at midnight local time (4 p.m. ET Saturday)…

Leave a Reply

Your email address will not be published. Required fields are marked *