Global stocks are falling as locking fears hit the retirement sector

Global stocks are falling as locking fears hit the retirement sector

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The downward trend affected all but a few stocks in the UK 100-share index. Online delivery service Just Eat and supermarkets Tesco, Morrisons and Sainsbury’s became the only positive region.

The FDSE 250 index, which is considered to be the best reflection of the health of the UK economy, closed almost 4% lower.

Pub and restaurant owner Mitchells & Butlers is one of its biggest losers, down more than 15% as concerns grow that the hospitality industry could lose a new lock.

The pound lost ground against the dollar, falling 1% to 27 1.2790. It was down 0.4% against the euro at 89 1.0897.

Why is all this important to me?

Many people are more affected by the stock market crash than they think.

There are millions of people with pensions – private or through work – who will look at their savings (so-called limited contributory pensions) invested in pension plans. The value of their storage pot is affected by the effectiveness of these investments.

Retirement savings often allow professionals to choose where to invest to help this money grow, and a ratio will be in stocks.

The widespread fall in stock prices may be bad news for these investments, although pension investors insist they are long-term investments and are designed to prevent weakness.

Markets today certainly have a component of European solidarity, the FTSE 100 index in London, the Cake 40 in Paris, the Docs in Frankfurt and the Ipex in Madrid all suffering similar declines.

The reason behind the darkness is very clear. As the number of Covid-19 cases increases rapidly here and in many European countries, there is a real possibility of new restrictions in everyday life. In some regions – such as Madrid, for example – they are already in place.

The fear is that while these measures are not likely to be as drastic as the locks in the spring, they will weigh on economic activity and prevent a post-lock recovery.

Shares have plummeted on the board, but inevitably companies that rely on people to evacuate, merge, and merge have been hit the hardest.

Airlines, travel companies and hospitality businesses are already having a terrible year – and investors know they can face further setbacks.

‘Bitter pill’

Corona virus cases are on the rise in many European countries as governments try to avoid another round of national locks.

In the UK, top scientists warn of it The country is at a “critical stage” of epidemics And “going in the wrong direction”.

Prime Minister Boris Johnson is understood to be considering a two-week mini-lockdown in the UK – referred to as a “circuit-breaker” – in an effort to stem the spread of the virus.

Susanna Streeter, a senior investment and market analyst at Hargreaves Lansdowne, said: “The FTSE100 has been badly affected by its European counterparts, with a storm of distrust in the news cycle.

He added that the concerns of the travel industry have had a “domino effect” as investors have not seen any decision to drop demand for new aircraft.

At the same time, after a summer of resuming sales, the possibility of evening corona virus curfew orders is a “bitter pill to swallow” for the hospitality industry.

If you add the prospect of non-contract Brexit to the dark mix, it seems that many investors today are caught up in the harsh case of tremors. ” ‘

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About the Author: Cory Weinberg

"Alcohol evangelist. Devoted twitter guru. Lifelong coffee expert. Music nerd."

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