[ad_1]
Affected by the growing epidemic in Europe and the United States and the money laundering scandals of financial institutions, the main US stock indexes plummeted across the board on Monday (21). The Dow Jones industrial index fell more than 600 points or 2.3% at the open, and the S&P 500 and Nasdaq fell almost 2%, half of the rate was reduced by more than 2.5%.
In addition, the US dollar index returned to above 93, spot gold fell more than 2% and fell to $ 1,925.2 an ounce in early trading.
News on the New Crown Pneumonia Epidemic
According to data from Johns Hopkins University, as of Monday (21), the cumulative number of confirmed cases of new coronary pneumonia in the United States has reached 6.8 million, and the cumulative number of deaths is close to 200,000, occupying the first place in the world, and the accumulated deaths of Brazil. The number is second in the world, with 137,000 people, and India has a total of 88,000 deaths, ranking third.
Furthermore, the epidemic in Europe continues to intensify. British Prime Minister Johnson & Johnson is reportedly considering implementing a “small” two-week lockdown. The British government also warned that if inaction continues, the number of new diagnoses in the UK may reach 50,000 a day from mid-October. . Due to the increase in the number of infections in France, the Netherlands and other countries, the German Health Minister also expressed concern about the uncontrolled spread of the virus.
The worsening epidemic caused cruise stocks to drop overall at the open. Norwegian Cruise Line (NCLH-US) fell 5.85%, Royal Caribbean (RCL-US) fell 5.62%, Carnival (CCL-US) fell 4.83% and aviation and tourism stocks fell. .
Financial Institution Money Laundering Storm
On Monday (21) a series of confidential documents of the Financial Crimes Enforcement Network (FinCEN) of the US Department of the Treasury were published. The documents pointed out that in the last 20 years, suspicious transactions in financial institutions, including HSBC and Deutsche Bank, amounted to more than 2 trillion US dollars. Several financial institutions were exposed to illegal activities such as money laundering.
The bad news seriously affected market sentiment, driving bank shares to open lower. Deutsche Bank (DB-US) fell 8.2%, HSBC Bank (HSBC-US) fell 5.68%, JP Morgan Chase (JPM-US) fell 3.22% and Bank of New York Mellon (BK -US) fell 2.85%.
Starting Monday (21) 21 o’clock, Taipei time:
- The Dow Jones index fell 631.57 points or -2.28%, temporarily to 27,025.85 points.
- Nasdaq fell 207.62 points or-1.92%, temporarily reporting 10,684.10 points
- The S&P 500 fell 65.21 points, or -1.96%, to 3,254.26 points temporarily
- Rates and media fell 56.94 points or -2.63%, temporarily to 2104.08 points
- TSMC ADR fell 1.09% to $ 79.36 per share
- Yield on 10-year US Treasuries fell to 0.654%
- New York light crude oil fell 1.80% to $ 40.37 a barrel
- Brent crude fell 1.76% to $ 42.39 a barrel
- Gold fell 1.88% to $ 1,925.20 an ounce
- The US dollar index rose 0.58% to 93.495 points.
Focus actions:
Nikola (NKLA-US) fell 22.89% in early trading to $ 22.36.
Nikola, an electric truck startup involved in a fraud scandal, announced on Monday (21) that founder Trevor Milton had voluntarily resigned as CEO and had obtained board approval. Stephen Girsky, former vice president of General Motors, will take over as Nikola’s president. The work order is effective immediately.
Short-selling agency Hindenburg Research released a report earlier this month that Trevor Milton, the founder of Nikola, was suspected of fraud, which included overdoing the technology of electric trucks and exaggerating the number of orders, and accusing Nikola’s electric trucks on the road that the movie was completely fake, the US Securities and Exchange Commission (SEC) and the Department of Justice. Then join the investigation.
Oracle (ORCL-US) was up 4.10% in early trading to $ 62.20.
The President of the United States, Trump, declared on Sunday (20) that, in principle, the acquisition of TikTok, Oracle and Wal-Mart was approved. The United States Department of Commerce also announced that it would postpone the TikTok ban period for one week until September 27.
Oracle and Wal-Mart issued a statement in which they indicated that they will acquire 12.5% and 7.5% of the shares of TikTok Global, respectively. TikTok Global will own all of TikTok’s technology and comply with US privacy laws and regulations.They also revealed that TikTok Global will hold an initial public offering within 12 months.
Illumina (ILMN-US) fell 7.06% in early trading to $ 274.65.
The Wall Street Journal quoted people familiar with the matter as reporting that genetic testing company Illumina will acquire Grail, a self-founded cancer early detection company, for $ 7.1 billion in cash and stock. Details of the transaction are expected to be announced later on Monday (21).
Illumina founded Grail in 2016 and currently has a large number of shares in Grail. People familiar with the matter said that under the terms of the acquisition agreement, Grail shareholders other than Illumina will receive $ 3.1 billion in cash plus $ 4 billion in Illumina stock.
Daily key economic data:
- Chicago Fed August National Activity Index reported 0.79%, 1.18% expected, previous value increased from 1.18% to 2.54%
Wall Street Analysis:
Thomas Mantione, Managing Director of UBS Private Wealth Management, said: “The death of US Supreme Court Justice Ruth Bader Ginsburg reduces the possibility of reaching a new round of relief in the short term.”
Mantione believes that the death of Ruth Bader Ginsburg brings another bargaining factor to the rescue plan, making it less likely to come up with a plan before the November general election.
LCG Research Director Jasper Lawler said the next step will be to pay attention to the market response triggered by US President Trump’s approval of the TikTok acquisition by Oracle and Wal-Mart and the speech by the Fed chairman Ball.
[ad_2]
