Omicron and Manchin deliver a one-two punch to global stock markets
Category: News & PoliticsVia: krishna • 5 months ago • 46 comments
By: Bernhard Warner
Omicron and Manchin deliver a one-two punch to global stock markets (Yahoo Finance)
The first jolt for investors landed like a gut punch this weekend. West Virginia Sen. Joe Manchin went on Fox News Sunday to say he's a no on Build Back Better, putting the Biden-backed $1.75 trillion domestic spending plan on thin ice.
Within hours of the pronouncement, Goldman Sachs revised lower its outlook for 2022 U.S. economic growth.
On cue, U.S. futures sunk on Monday, with the Dow Jones industrial average futures off more than 450 points around 4 a.m. ET.
The news buffeting global markets. Investors in Asia and Europe dumped shares in a broad-based selloff. Risk assets, the ones most tied to global growth, took a pounding.
Brent crude fell more than 4%, and that rocked energy and travel and leisure stocks.
The benchmark Stoxx Europe 600 was off nearly 2.3% in early trading, and S&P 500 futures were down nearly 2% at one point.
Crypto bulls, too, were hardly cushioned from the volatility. The end-of-year slump in everything from Bitcoin to Ether to Dogecoin continued on Monday. Bitcoin was off nearly 3% at 4 a.m. ET, well below its 200-day moving average. Ethereum's Ether was down nearly 5%.