S&P 500 futures are losing ground in premarket trading amid concerns about new lockdowns in Europe and continued deterioration of relations between China and Western countries.
Germany announced that it will have to impose virus containment measures until April 18 as the country had to deal with the British variant of the virus which is more contagious. Europe’s problems with coronavirus will likely put pressure on the EU economy in the second quarter of 2021 which is bearish for global markets.
Meanwhile, China imposed sanctions on individuals and entities from the EU in retaliation for sanctions imposed on China’s officials for the situation in Xinjiang. These sanctions were the first ones imposed on China by EU in thirty years, so it’s a major development on the political front. It remains to be seen whether recent developments will have any practical implications but markets are concerned about worsening ties between China and the West.
Oil Dives Below The $60 Level On Concerns About Demand In Europe
WTI oil declined below the psychologically important $60 level and tested the support at $58.50 as traders reacted to Germany’s decision to extend lockdown measures until April 18.
At this point, it looks like recovery of international travel is still far away despite mass vaccination programs in developed countries which is bearish for oil.
Oil-related equities will find themselves under significant pressure at the start of today’s trading session as traders remain worried about Europe’s problems with coronavirus.
U.S. Says That AstraZeneca May Have Provided Outdated Data
Shares of AstraZeneca are down by more than 2% in premarket trading as U.S. stated that it was concerned that the company included outdated data in the information from its COVID-19 vaccine trial.
AstraZeneca’s vaccine has recently suffered a PR blow as European countries paused its use on concerns about its safety. New concerns from the U.S. may further undermine public confidence in the vaccine and slow down mass vaccination programs which is bearish for markets.