PARIS (Reuters) – The New York Stock Exchange opened lower on Monday, hurt by the resurgence of the COVID-19 epidemic in China which raised fears of an impact on demand and production, while the return of Bob Iger to the head of Walt Disney, perceived positively, reassures the markets a little.
In early trading, the Dow Jones index lost 11.96 points, or 0.04%, to 33,733.73 points and the broader Standard & Poor’s 500 fell 0.42% to 3,948.32 points.
The Nasdaq Composite lost 0.61%, or 68.39 points, to 11,077.67.
Faced with a new wave of COVID-19 contamination, schools are closed on Monday in Beijing, while the city of Guangzhou has confined its most populous district, undermining the recent relaxation by the authorities of the policy of “zero -COVID”.
“There is a real concern that the slowdown in the Chinese economy will affect US economic activity,” said Hugh Johnson, economist at Hugh Johnson Economics.
Casino operators exposed to China like Wynn Resorts, Las Vegas Sands, MGM Resorts International and Melco Resorts & Entertainment lost 1.52% to 7.80%.
Chinese groups listed in New York such as Alibaba Group Holding, Pinduoduo, JD.com and Bilibili drop from 3.06% to 6.42%.
In the rare satisfactions on Wall Street, Walt Disney jumped 8.49% following the announcement of the return with immediate effect of its former CEO, Bob Iger, and the resignation of Bob Chapek, who had succeeded him at the head of the group in February 2020.
In the absence of economic indicators, the markets are also looking to the minutes of the last meeting of the US Federal Reserve, which will be published on Wednesday, while the week will be shortened due to Thanksgiving on Thursday.
(Written by Claude Chendjou, edited by Kate Entringer)