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20.04.202114:59 Forex Analysis & Reviews: Biggest monthly fall: global stock markets drop, offsetting recent records

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On Monday, the leading shares of the global equity markets closed down, marking the biggest daily drop in nearly four weeks after hitting impressive all-time highs.

Exchange Rates 20.04.2021 analysis

The US stock markets showed the steepest decline. Thus, the Dow Jones Industrial Average lost 0.4% to close at 34,077.63. The S&P 500 sank by 0.5% to 4163.26, while the Nasdaq Composite fell by 1% to 13914.77.

Exchange Rates 20.04.2021 analysis

The shares of US exercise equipment maker Peloton slumped by 7.3% after the US regulator issued a safety notice over the company's new development. Thus, the federal safety agency told people with young children or pets to stop using Peloton treadmills.

US electric-car maker Tesla's stock lost 3.4%. This fall in shares was caused by a tragic crash involving a Tesla vehicle outside of Houston. According to experts, there was no one sitting in the driver's seat. The car crashed into a tree. As a result, two men were killed.

The shares of video game retailer GameStop Corp rose by 6.3% after the company announced its CEO succession plan.

According to Wall Street analysts, the negative dynamics in the US markets can be explained as follows: "The market has had a huge jump to the upside so it needs to take a little bit of rest." In addition, experts argue that everything that is going on is just a process of locking profits amid the fact that investors are waiting for results from large technology companies.

As for other global indicators, the MSCI World Index declined by 0.37%. The pan-European STOXX 600 sank by 0.07%, while emerging market equities remained positive, gaining 0.03%. MSCI's broadest index of Asia-Pacific shares outside Japan added 0.14%, while Nikkei futures fell by 1.63%.

Today, market participants' attention is focused on the US dollar's dynamics. Thus, the US dollar index slumped to a six-week low, losing 0.57%, while the euro advanced by 0.43% to $1.2035. The weak greenback's performance was triggered by the apparent divergence in the outlook between the slumping UST yields and the rather perky bond yields elsewhere.

Meanwhile, the Japanese yen rose by 0.59% to 108.13 against the US dollar, while the pound sterling gained 1.13% to 1.3986.

Benchmark 10-year US Treasury yields dropped by 1.6011% on Monday from 1.573% on Friday.

Spot gold dipped by 0.3% to $1,770.69 an ounce. Silver fell by 0.60% to $25.80.

The price of bitcoin slipped by 0.92% to $55,764.99.

Despite the fact that global oil prices edged up, rising COVID-19 infections in India prompted concerns among market participants. Thus, tougher measures to combat the pandemic in the world's third largest oil importing and consuming country affect investor optimism about a rapid recovery in global demand.

Exchange Rates 20.04.2021 analysis

As for oil prices in the United States, they closed Monday's session with gains. US crude added 0.46% to $63.42 per barrel of WTI, while Brent was up 0.45% to close at $67.07.

Eseguito da Irina Maksimova
Esperto analista di InstaForex
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