Asian Stocks under pressure after a spike in cases of coronavirus

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NEW YORK (Reuters) – Asian shares were expected to come under pressure on Wednesday, as a rise in the number of new infections with the coronavirus have weighed on sentiment, while the UNITED states the assurance that the China trade agreement was intact and upbeat economic data provided few reasons to be optimistic.

FILE PHOTO: a man wearing A protective mask, following the coronavirus disease (COVID-19) outbreak, the walks in front of a stock quotation board outside a brokerage in Tokyo, Japan, on 18 May 2020. REUTERS/Kim Kyung-Hoon

Kyle rodda from, market analyst at IG Markets, said at the end of the sale seen in Wall Street, offers a “soggy start” to the Asian markets.

“We expect something of a positive start to Asian trade, but we have the overhanging concern about the virus itself and a second wave conduct,” said Kyle rodda from, market analyst at IG Markets. “The market is clinging to a recovery as he can.”

Australian S&P/ASX 200 futures increased by 0.15% in early trading.

Japan’s Nikkei 225 futures fell 0.02%. Hong Kong’s Hang Seng index futures lost 0.01%.

On Wall Street, the Dow Jones Industrial average closed 0.5%, the S&P 500 gained 0.43% and the Nasdaq Composite added 0.74%.

However, the three major indices pared gains from highs of more than 1% earlier in the session Tuesday.

Coronavirus case in the UNITED states has increased 25% in the week ended June 21, compared from the week before, according to Reuters analysis.

States of the united states, including Texas and Arizona set records in their homes. The European Union is ready to bar the U.S. travelers due to an increase in cases in the country, putting it in the same category as Brazil and Russia, the New York Times reported Tuesday.

“For the time being, the markets may have difficulty with the implications given the high bar to re-impose restrictions,” according to a research note from the National Australia Bank.

Remarks by U.S. Treasury Secretary Steven Mnuchin helped boost the mood on Wall Street. He said that the next US stimulus bill will focus on getting people back to work quickly and that he would consider a further delay of the filing deadline.

The MSCI gauge of stocks around the world gained 0.90%.

The euro jumped to one-week highs after positive economic data on Tuesday, and other high-risk currencies strengthened.

The dollar index fell 0.228%, with the euro up 0.01% at $1.1307.

Oil prices have declined after reaching their highest level since the beginning of March, on expectations that U.s. inventories have hit a record high for a third consecutive week.

U.S. crude has recently increased from 0.89% at $40.01 a barrel, while Brent was flat on the day.

Reporting by Jessica DiNapoli in New York; Editing by Sam Holmes

Our Principles:Thomson Reuters Trust Principles.

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