Stocks asian slip so that new cases of coronavirus shake the markets


BANGKOK – The shares have slipped in Asia on Thursday after a sharp fall overnight on Wall Street, while the new cases of coronavirus in the United States have reached their highest level in two months, dampening the hopes of the investors for the economic recovery to be relatively quick.

The markets of Hong Kong, Taiwan and Shanghai were closed for holidays.

The Nikkei 225 in Tokyo slipped from 1.3% to 22 234,80 and the Kospi in Seoul lost 1.8% to 2 122,48. The Australia’s S & P / ASX 200 fell 2% after its biggest airline, Qantas, has announced its intention to remove at least 6 000 jobs and keep 15 000 additional workers in overtime to survive the pandemic of sars coronavirus.

The airline said it would reduce its costs by billions of dollars and meet new capital, while holding 100 aircraft for a year or more, and immediately removing its six Boeing 747 remaining.

The markets have fallen in South-East Asia, the index SET of Bangkok losing 0.9 per cent.

Overnight, the S&P 500 has lost 2.6% to 3 050,33, which has brought back all of its gains for the month. The sale followed a skid of stock market indices in europe. It has accelerated the news that New York, New Jersey and Connecticut require that visitors from nine States with high rates of infection should be quarantined for 14 days.

The increase of new infections raises fears that the reopening of firms closed earlier for the fight against the pandemic should not be reduced, despite indications that the economies are recovering closures that are relaxed in the United States and in other countries.

“A huge problem for investors is that the volatility is too expensive to buy at the moment, so they find it easier to simply cut and run from their positions in the stock market,” said Stephen Innes of AxiCorp in a comment.

In addition to the continuing concerns regarding the trade tensions between the United States and China, reports have indicated that the White House is considering new tariffs on $ 3.1 billion of exports to France, Germany, Spain and Great Britain. This has contributed to falling markets, fearing that such a decision does not degenerate into a new trade war, said Jingyi Pan of IG.

“Fears renewed of the gap COVID-19 and the new rates to reign … to guide the market sentiment in the middle of the week, while riskier assets lost investors ‘favour,” said Pan.

Technology companies, led the market higher after having rebounded after falling in march, have accounted for the largest share of the decline in the u.s. market. The financial values, health care, communication services and the industrial sector have also suffered heavy losses. The energy stocks have declined the most, the price of oil has fallen sharply.

The cruise passengers, who would suffer a lot if the travel restrictions were extended, were among the biggest losers in the S&P 500. Norwegian Cruise Line, Carnival and Royal Caribbean Cruises have each lost more than 11%. Hoteliers are also in decline. Wynn Resorts and MGM Resorts International declined each of more than 8%. The actions of the airlines have also fallen. Delta Air Lines has slipped from 7.2%.

The Dow Jones Industrial Average lost 2.6% to 25 480. The Nasdaq, which came to produce his second record-breaking history this week, lost 2.2% to 9 909,17. The Russell 2000 index of shares of smaller companies has lost 3,4%.

Despite the loss of his earnings for June, the S&P 500 is still on track for its best quarter since the fourth quarter of 1998.

The market is mostly in mode rally since April, investors are focusing on prospects for an economic recovery with the reopening of broad sectors of the economy. But the recent surge in new infections is undermining a part of this optimism.

Hospitalizations and the number of cases of coronavirus have reached new peaks in more than half-a-dozen american States and the new cases at the national level are close to their record highs of two months ago.

While the first hot spots such as New York and New Jersey have seen the event steadily decrease, the virus hits the south and west, with several States establishing records a day, including Arizona, California, Mississippi, Nevada and Texas.

The performance of the good 10-year Treasury fell to 0.67% compared to 0.69 per cent on Wednesday night. It tends to evolve with investors ‘ expectations for the economy and inflation.

In energy trading, crude-oil benchmark u.s. has dropped from 23 cents to 37,78 per barrel in the electronic trade on the New York Mercantile Exchange. He slipped 5.8%, to reach $ 38,01 $ per barrel Wednesday.

The crude oil-Brent, the international standard, fell 25 cents to 40,28 per barrel. It fell 5.4% to close at 40,31 $.

In foreign exchange trading, the dollar bought 107,19 japanese yen, from 107,05 yen. The euro slipped to 1,1246 $ against 1,1252 $.

Elaine Kurtenbach, The Associated Press


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