Global stocks took a heavy hit on Monday, while government bonds rallied and the dollar snapped a losing streak in a rush of nerves about a potential new set of lockdowns to tackle the coronavirus pandemic.
The tech-focused Nasdaq Composite shed 2 per cent, wiping out the last traces of the melt-up in August, with the benchmark S&P 500 index sinking by a similar degree. Declines in Europe were even more pronounced, with Germany’s Dax dropping by 4 per cent in its worst day since June.
Renewed virus concerns dealt a blow to bank and travel shares across markets, pulling Bank of America down 4 per cent and United Airlines down 10 per cent. The falls come amid persistent rises in coronavirus cases worldwide and the prospect of tighter lockdown restrictions in countries such as the UK. Oil prices also fell 4 per cent to under $42 a barrel for benchmark Brent, as traders grew anxious over the outlook for energy demand.