Naresh Parmar
The increasing spread of the Delta virus spread in Asia and the US has dented investor sentiments. After two days of smooth rallies, the Asian markets are trading weak on Tuesday. The markets in the US also had closed mildly in the red on Monday.
The increased number of cases of Delta Virus, even in the US may impact global economic growth. After Australia, the spread of the Delta variant of Coronavirus has put Chinese authorities on high alert resulting in a cautious approach by traders in the stock market. Japan’s Nikkei was off 0.85% in early trade. China’s blue-chip index CSI300 shed 0.80% while Hong Kong’s Hang Seng Index fell 0.83%. Australia’s benchmark index, the S&P/ASX200 is off 0.25%.
Evidence of risk-off – selling in riskier assets and buying in safe heavens – was evident in the Market. In commodities crude oil was down, yields in treasury papers are down while the Japanese Yen and Swiss Franc gaining.
