Jakarta, CNBC Indonesia – Of course! Stock markets of the United States (US) fell at the opening of trading Monday (21/9/2020), as indicated on the Wall Street index futures market a few hours earlier.
The combination of bad news from around the world triggered a sell-off by market participants in September, or September Selloff, peaking. Wall Street retreated for a third straight week so far this month, becoming its longest weekly correction since 2019.
The Dow Jones Industrial Average opened a landslide of 496.5 points (-1.8%) at 08:30 local time (20:30 WIB) and 15 minutes later it got worse so 602.8 points (-2.2%) to 27,054.61. The Nasdaq dropped 144.9 points (-1.3%) to 10,648.37 and the S&P 500 fell 58.7 points (-1.8%) to 3,260.82.
Some of the bad news that discouraged investors included news that the UK was considering a lockdown plan (lockdown) following the increase in the spread of the corona virus (the latest strain).
“It seems that the biggest reason for the correction on most global stock exchanges is the concern that tighter virus restrictions in Europe will lead to an increase in Covid cases as we are now entering a cooler season,” said Matt Maley, Chief Market Planner at Miller Tabak, in a research report which is quoted CNBC International.
Bank shares in various parts of the world also fell following reports that several giant global banks were managing suspicious funds in the last two decades. Deutsche Bank shares plunged 8.3%, while JP Morgan dropped more than 2.8%.
The report prepared by BuzzFeed and the International Consortium of Investigative Journalists (ICIJ) states that between 1999-2017 there were more than US $ 2 trillion in transactions suspected of being money laundering or illegal fund management activities.
“We do not comment on the news regarding suspicious activity,” said HSBC in its official statement. Meanwhile, Standard Chartered said in a statement that in reality there will always be efforts to launder money and avoid sanctions, and there is a need to “take responsibility to fight financial crime very seriously.”
Beyond that, the market is still paying attention to an increase in corona cases, after the World Health Organization (WHO) on Friday warned that the coronavirus “will not go far,” insisting that a week ago 50,000 were killed.
Market participants are also watching developments in Washington where politicians are working to reach an agreement on a stimulus package. The fate of the stimulus has become increasingly hazy after Trump wants to propose a replacement for Supreme Court Justice Ruth Bader Ginsburg.
It is believed that the battle between the two camps in the position of Supreme Court Justice will put stimulus as second priority because Washington’s politicians’ focus will be sucked in the Chief Justice.
CNBC INDONESIA RESEARCH TEAM
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