# World, U.S. share markets come under pressure as Delta, economic worries mount Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2021-09-07 Category: INVESTING Category URL: https://financedigest.com/category/investing Meta Title: Market Update: World Stock Markets Fall Amid Economic Meta Description: Stay informed on world stock market trends as investors grapple with economic recovery worries and Delta variant impact. Latest updates from Reuters. URL: https://financedigest.com/world-u-s-share-markets-come-under-pressure-as-delta-economic-worries-mounthtml By Chris Prentice and Danilo Masoni WASHINGTON/MILAN (Reuters) – World stock markets fell from record highs and U.S. shares were mixed on Tuesday as mounting [worries over the slowing pace of economic](https://www.financedigest.com/stocks-falter-as-economic-worries-nag-nz-delivers-big-rate-hike.html "Stocks falter as economic worries nag, NZ delivers big rate hike") recovery and the impact of the coronavirus Delta variant overtook investors’ hopes the Federal Reserve will delay tapering. [Wall Street](https://www.financedigest.com/asian-stocks-edge-up-before-u-s-jobs-data-defying-wall-street-selloff.html "Asian stocks edge up before U.S. jobs data, defying Wall Street selloff") opened softer after Monday’s U.S. Labor Day holiday and the MSCI world equity index retreated from a [record hit](https://www.financedigest.com/londons-ftse-100-hits-fresh-record-high-as-telecoms-surge.html "London’s FTSE 100 hits fresh record high as telecoms surge") overnight, following seven consecutive days of gains to all-time highs. That followed [gains during Asia’s trading hours on hopes of extra stimulus in Japan and strong China trade data](https://www.financedigest.com/shares-steady-dollar-gains-ahead-of-u-s-inflation-data.html "Shares steady, dollar gains ahead of U.S. inflation data"). The Dow Jones Industrial Average fell 292.45 points, or 0.83 percent, to 35,076.64, the S&P 500 lost 19.29 points, or 0.43 percent, to 4,516.14 and the Nasdaq Composite dropped 8.90 points, or 0.06 percent, to 15,354.62 by 11:12 a.m. EDT (1512 GMT). European [stocks retraced ahead](https://www.financedigest.com/stocks-dollar-pause-ahead-of-powell-biden-speeches.html "Stocks, dollar pause ahead of Powell, Biden speeches") of an ECB policy meeting on Thursday. The STOXX 600 benchmark was down 0.5% but just below its lifetime [peak hit](https://www.financedigest.com/australia-covid-numbers-hit-a-peak-as-omicron-outbreak-strains-domestic-politics.html "Australia COVID numbers hit a peak as Omicron outbreak strains domestic politics") in August. The combination of exorbitant expectations, nosebleed valuations and slowing macro environment make the go-forward reward/risk outlook less attractive,” said Jeffrey Carbone, [managing director at Cornerstone Wealth](https://www.financedigest.com/wealth-management-consultant.html "Wealth management consultant") in Huntersville, North Carolina. Data on Friday showed the U.S. economy created 235,000 jobs in August, the fewest in seven months as hiring in the leisure and hospitality sectors stalled, reducing expectations that the Fed will opt for an early tapering of its [monthly bond](https://www.financedigest.com/investors-flee-uk-bonds-pushing-gilts-to-huge-monthly-loss.html "Investors flee UK bonds, pushing gilts to huge monthly loss") purchases. The [market took the surprisingly soft](https://www.financedigest.com/the-soft-contact-lenses-market-to-show-innovation-based-steadiness.html "The Soft Contact Lenses Market to show innovation-based steadiness") U.S. payrolls report on Friday “in stride, with the assumption that the Covid-19 Delta variant had an [impact on economic](https://www.financedigest.com/dollar-skids-after-soft-u-s-economic-data-impact-of-opec-cuts-fades.html "Dollar skids after soft U.S. economic data; impact of OPEC+ cuts fades") activity in August,” Arthur Hogan, chief market strategist at brokerage National Holdings in New York, said in a market note. Speeches by a number of U.S. policymakers later this week will be closely watched for any indication about how the weak jobs report has [impacted the Fed’s plans on tapering its bond](https://www.financedigest.com/stanchart-ceo-says-at1-bond-wipeout-has-profound-impact.html "StanChart CEO says AT1 bond wipeout has profound impact") purchases and keep its expansive policy for the near-term. The recent equity [rally started after Fed Chair Jerome Powell’s](https://www.financedigest.com/jittery-markets-attempt-risk-on-rally-while-waiting-for-powell.html "Jittery markets attempt risk-on rally while waiting for Powell") dovish speech at the Jackson Hole Symposium in August. Given that before Jackson Hole many FOMC members had come out in favor of tapering on a tight timetable, we’ll see if they confirm, or align with Powell’s more moderate message,” said Giuseppe Sersale, [fund manager](https://www.financedigest.com/why-ai-can-be-the-key-to-success-for-fund-managers-in-the-post-covid-landscape.html "Why AI can be the key to success for fund managers in the post-COVID landscape") at Anthilia. Yields on U.S. Treasury bonds and inflation-protected securities rose on Tuesday, extending last week’s rise when data showing a jump in average wages confirmed price pressures were building in the [world’s biggest economy](https://www.financedigest.com/at-chinas-largest-trade-fair-exporters-worry-about-world-economy.html "At China’s largest trade fair, exporters worry about world economy"). Japanese [shares rallied further on hopes](https://www.financedigest.com/hopes-of-slowdown-in-rate-hikes-bolster-shares-ahead-of-u-s-gdp.html "Hopes of slowdown in rate hikes bolster shares ahead of U.S. GDP") the ruling Liberal Democratic Party will offer additional economic stimulus and easily win an upcoming general election after Prime Minister Yoshihide Suga said he would quit. Tokyo’s Nikkei [crossed the 30,000 mark](https://www.financedigest.com/spotify-listeners-cross-half-a-billion-mark.html "Spotify listeners cross half a billion mark") for the first time since April, also helped by an announcement on its reshuffle, and the broader Topix index climbed 1.1% to a 31-year high. Anthilia’s Sersale said [investors had a defensive positioning on Japanese stocks](https://www.financedigest.com/uk-stocks-slip-as-rate-hike-worries-grip-investors.html "UK stocks slip as rate hike worries grip investors") that led to a short squeeze. I was positive on Tokyo ( [stocks](https://www.financedigest.com/mutual-funds-vs-stocks-which-is-better.html "stocks")) and remain so, but perhaps at this point it is better to look for a less overbought entry point,” he said. Mainland Chinese [shares extended gains](https://www.financedigest.com/european-shares-set-for-weekly-gain-on-u-s-inflation-outlook.html "European shares set for weekly gain on U.S. inflation outlook"), with the Shanghai Composite rising 1.5% to its highest since February, helped by Chinese trade data showing both exports and imports grew much more quickly than expected in August. The mood is improving on hopes the [government will take measures](https://www.financedigest.com/factbox-government-measures-to-ease-inflation-pain.html "Factbox: Government measures to ease inflation pain") to support the economy and that the monetary environment will be kept accommodative,” said Wang Shenshen, senior strategist at Mizuho Securities. A rout in bonds and [shares of China Evergrande Group deepened on Tuesday after new credit](https://www.financedigest.com/bank-shares-rise-after-credit-suisse-rescue-eases-crisis.html "Bank shares rise after Credit Suisse rescue eases crisis") downgrades on the country’s No. 2 developer. The euro was last down 0.17 percent at $1.1848, while Europe’s broad FTSEurofirst 300 index [dropped 0.47 percent](https://www.financedigest.com/optimism-levels-drop-to-low-of-17-percent-according-to-first-survey-since-banking-regulations.html "Optimism levels drop to low of -17 percent, according to first survey since banking regulations") to 1,821.34. The ECB is [seen debating a cut](https://www.financedigest.com/icrc-to-cut-some-1500-jobs-as-humanitarian-budgets-seen-sliding.html "ICRC to cut some 1,500 jobs as humanitarian budgets seen sliding") in stimulus, with analysts expecting purchases under its Pandemic Emergency Purchase Programme (PEPP) falling, possibly as low as 60 billion euros a month from the current 80 billion euros. ING strategist Chris Turner said Friday’s soft U.S. jobs report and dovish comments last [month by Powell have taken “some of the sting out of the dollar’s](https://www.financedigest.com/european-shares-hit-nine-month-high-dollar-wobbles-after-powell-remarks.html "European shares hit nine month high, dollar wobbles after Powell remarks") upside. Even the unloved EUR has found a few friends over recent weeks as hawks on the ECB [demand a reassessment of pandemic support levels,”](https://www.financedigest.com/delta-sees-return-to-profit-as-travel-demand-hits-historic-levels.html "Delta sees return to profit as travel demand hits ‘historic’ levels") he noted. Germany’s 10-year yield rose to its highest since mid-July. The Australian dollar briefly rose after the central bank went ahead with its planned tapering of bond purchases, but quickly gave up those gains after the bank reiterated its need to see sustainably higher [inflation to raise interest rates](https://www.financedigest.com/hotel-investors-should-they-be-worried-about-a-potential-economic-pause-delving-into-inflation-interest-rates-recession-etc.html "‘Hotel Investors – should they be worried about a potential economic pause?’ delving into inflation, interest rates, recession etc"). The Aussie was 0.74% lower, off its 1-1/2-month high set on Friday. [Oil prices fell after Saudi Arabia’s sharp cuts to crude contract prices for Asia revived concerns](https://www.financedigest.com/oil-near-flat-as-us-crude-stock-draw-contends-with-economic-concerns.html "Oil near flat as US crude stock draw contends with economic concerns") over slower demand. Brent crude futures fell 0.65% to $71.78 per barrel, while U.S. crude futures declined 1.44% to $68.29. \[O/R\] (Reporting by Chris Prentice in Washington, Danilo Masoni in Milan and Hideyuki Sano in Tokyo; Editing by Jane Merriman and Dan Grebler) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---