Left Menu
Development News Edition

GLOBAL MARKETS-Global shares slip on pandemic surge, failing stimulus hopes

Global shares slipped on Thursday as investors locked in recent gains amid rising concerns about resurgent COVID-19 infections and after U.S. Treasury Secretary dashed any remaining hopes of a stimulus package before the Nov. 3 election.

Reuters | Updated: 10-11-2020 08:54 IST | Created: 15-10-2020 08:52 IST
GLOBAL MARKETS-Global shares slip on pandemic surge, failing stimulus hopes

Global shares slipped on Thursday as investors locked in recent gains amid rising concerns about resurgent COVID-19 infections and after U.S. Treasury Secretary dashed any remaining hopes of a stimulus package before the Nov. 3 election. MSCI's broadest index of Asia-Pacific shares outside Japan lost 0.5% while Japan's Nikkei dropped 0.5%.

U.S. S&P 500 futures sagged 0.27% in Asia after major U.S. stock indexes ended the previous session lower, with the S&P 500 closing down 0.7% and the Nasdaq Composite Index shedding 0.8%. Disappointing quarterly results from Bank of America and Wells Fargo led the S&P 500 banks index 2.4% lower.

Concerns that a resurgence in the COVID-19 pandemic could lead governments to again shut down economies spurred profit-taking, particularly after the recent stock rally. With COVID-19 cases surging, some European nations are closing schools, canceling surgery, and enlisting student medics as overwhelmed authorities braced for a repeat of the nightmare scenario seen earlier this year.

That helped push the German 10-year Bunds to yield to as low as minus 0.586%, a rate last seen in May. Tensions between Beijing and Washington remain in view after the U.S. State Department submitted a proposal for the Trump administration to add China's Ant Group to a trade blacklist, according to two people familiar with the matter, before the financial technology arm of e-commerce giant Alibaba is slated to go public.

Downbeat comments from U.S. Treasury Secretary Steven Mnuchin that a stimulus deal was unlikely be made before the Nov. 3 vote also provided another excuse for profit-taking. Still, many investors expect large stimulus after the election, which Democratic presidential candidate Joe Biden is increasingly expected to win.

Although Biden has been seen as more likely to raise taxes on corporate profits and capital gains, investors are also pointing to other potential benefits of a Biden presidency, such as less global trade uncertainty. "It smacks of opportunism when markets were saying just a few months ago stocks would crash if Trump would lose and now they say Biden victory would be good for stocks," said Norihiro Fujito, chief investment strategist at Mitsubishi UFJ Morgan Stanley Securities. "What this suggests is that markets are flush with cash after massive monetary easings by global central banks."

In currencies, sterling was well-bid at $1.3017, having climbed 0.6% on Wednesday on hopes of progress in talks between Britain and the European Union. But some of the enthusiasm was lost after British Prime Minister Boris Johnson told the head of the European Commission, Ursula von der Leyen, that he was disappointed there had not been more progress in the talks.

The Australian dollar shed 0.5% to $0.7128 after the country's central bank stoked speculation of a near-term cut in interest rates and more longer-dated government debt purchases. The need for further Australian stimulus was underlined by data showing 29,500 jobs were lost in October while the unemployment rate rose a tick to 6.9%.

The euro moved little at $1.1725 while the dollar changed hands at 105.20 yen. Oil prices rose slightly in early trade on Thursday after U.S. crude stockpiles fell last week, adding to 2% gains overnight, as OPEC and its allies were seen fully complying in September with their pact to curb output.

U.S. West Texas Intermediate (WTI) crude futures picked up 0.1% to $41.07 a barrel while Brent crude futures rose 0.2% to $43.39 a barrel. (Additional reporting by Suzanne Barlyn in New York; Editing by Sam Holmes)


TRENDING

OPINION / BLOG / INTERVIEW

Turbulence surrounding tobacco control in Ghana

... ...

Smart healthcare: IoT redefining the way healthcare is delivered

As the world is embracing the new wave of digitalization triggered by the pandemic and the arrival of 5G, the adoption of IoT devices will further boom. With adoption set to soar, IoT security issues and other challenges cant be ignored any...

Refugee compassion and response: Ideas to mitigate disasters now and in their future

Their homeland becomes a forbidden territory for them and more likely than not, their journey to foreign soil is no less traumatizing, not to say deadly. It is crucial to help refugees live a life of dignity and purpose....

Inadequate water infrastructure causes a tidal wave of coronavirus in rural Alaska

... ...

Videos

Latest News

UN condemns ‘brutal and callous’ attack on civilians in north-east Nigeria

In early afternoon of 28 November, local time, armed men on motorcycles attacked civilian men and women while they were harvesting crops in Koshobe village and other rural communities in Jere Local Government Area, near provincial capital...

Motor racing-Ricciardo disgusted with 'Hollywood' coverage of Grosjean crash

Daniel Ricciardo blasted the Hollywood coverage of Romain Grosjeans fiery Bahrain Grand Prix crash on Sunday and said he was disgusted by Formula One showing endless replays while drivers were waiting for the race to restart. Grosjean was l...

China reports 18 new COVID-19 cases vs 11 a day earlier

China reported 18 new COVID-19 cases on Nov. 29, up from 11 a day earlier, the national health authority said on Monday. The National Health Commission said in a statement 15 of the new cases were imported infections originating from overse...

Soccer-La Liga talking points

Talking points from the weekend in Spanish football MADRID FALL SHORT AGAIN AGAINST ORDINARY OPPONENTSReal Madrids 2-1 defeat at home to Alaves was their fourth defeat in all competitions and a quick look at their victors suggests that Zine...

Give Feedback