Markets go down on investor caution
Global stock markets mostly looked negative on Tuesday due to economic difficulties related to the continuing difficulties of the coronavirus in various countries. U.S. indices rose mostly the day before. Without following them, Asian stock markets fell 2.1% to major indices on Tuesday as investors fear the prospects for a stimulus package for the U.S. economy.
New US President Joe Biden has previously proposed a $1.9 trillion stimulus measure. The project was supported by Democratic leaders in Congress. But investors are concerned about problems with the adoption of the package or a significant reduction in the package due to a lack of support from Republicans in the Senate.
Fears of coronavirus are also putting pressure on markets. The prevalence continues to increase and many countries are expanding quarantine measures, which has a negative impact on economic activity. In particular, the Japanese government may extend the emergency system for 11 prefectures, introduced in January, by another month.
European markets are also still falling. Investors pointed to the words of the head of the Scientific Council of France, a specialist in immunology, about the possibility of a third blockade in the country due to the widespread distribution there of new strains of coronavirus. In addition, Astra’eneca announced a significant reduction in the number of shipments of vaccines to the European Union in the first quarter of this year due to a decrease in the number of vaccines produced. BioNTech and Pfizer also reported a drop in supply due to construction work at the Plant in Belgium.