(Bloomberg) – Stocks in Asia have retreated with US and European futures, indicating that the risk movement that hit the markets earlier this month may have to continue. The dollar has climbed.
S&P 500 futures fell more than 1.5% after global stocks fell more than 2% on Friday. Hong Kong stocks suffered the bulk of the losses, with Sydney and Seoul stocks also dropping. The Chinese yuan extended Friday’s fall as tensions with the United States increase. The Australian dollar slipped with the British pound and the euro, while Australian bonds rose slightly. Trading volumes may be slight due to the holidays in China and Japan, and treasury bills will not be traded until the opening of London. Treasury futures climbed and oil started the week back.
Global equity growth of more than 10% in April is tested as investors assess efforts by countries as they begin to loosen lock-in restrictions against fears of a second wave of infections and a steady stream of bad economic data . Westpac Banking Corp. in Australia announced a fall in profits on Monday and has become the last bank to delay paying a dividend. Profits continue this week, with companies such as Disney, BMW and Air France-KLM reporting.
“While it is unlikely that we will retest the March lows, there is at least a chance that we will return to the bottom of the April trading range – which would represent a further 7-10% drop from here, mostly risky assets, “said Ciaran Mulhall, managing director of Solus Capital Partners Ltd.
Sentiment is also behind new political clashes between the United States and China. Secretary of State Michael Pompeo said “huge evidence” shows that the new coronavirus epidemic started in a laboratory in Wuhan, China, but has provided no evidence of his claims. This comes after President Donald Trump and his aides intensified their criticism of Beijing last week, demanding answers about the origin of the virus and hinting at possible reprisals.
On the virus front, Gilead Sciences Inc. plans to distribute its remdesivir to patients in the days following US support for emergency use. New York had the fewest new deaths in more than a month, while deaths slowed in the United Kingdom and Italy.
“I fear that the market has taken all its optimism before facing the worst bad news on the economy and on certain industries and profits,” said Michael Jones, president and chief executive officer of Caravel Concepts LLC, on Bloomberg TV. “There are challenges and setbacks that will strike us in the face over the next four weeks and we are no longer at a price low enough to look past all of this bad news.”
Meanwhile, North Korean troops fired at their South Korean counterparts in the demilitarized zone that divides the two countries for the first time in years. The move came a day after Kim Jong Un resurfaced in a fertilizer factory, ending weeks of speculation about his fate.
These are the main movements on the markets:
Futures on the S&P 500 index fell 1.2% at 11:19 a.m. in Sydney. The gauge lost 2.8% on Friday. The Hong Kong Hang Seng Index fell 3%. Australia’s S & P / ASX 200 index slipped 0.9%. South Korea’s Kospi index fell 2%. FTSE 100 futures contracts fell 1.2%.
The yen gained 0.1% to 106.76 per dollar. The euro bought $ 1.0950, down 0.3%. The offshore yuan slipped 0.1% to 7.1410 for a The Bloomberg Dollar Spot Index rose 0.4% and the pound fell 0.5% to $ 1.2450. 0.5% to 63.87 cents US.
Yields on 10-year T-bills fell three basis points to 0.61% on Friday. Futures contracts increased 0.2%. Australia’s 10-year yield fell four basis points to 0.83%.
Crude West Texas Intermediate lost 7.1% to $ 18.38 a barrel. Gold fell 0.2% to $ 1,696.45 an ounce.
bloomberg.com “data-reactid =” 40 “> For more articles like this, visit us at bloomberg.com
Subscribe now to stay one step ahead of the most trusted source of business information. “Data-reactid =” 41 “> Subscribe now to stay on top with the most trusted source of business information.
© 2020 Bloomberg L.P.