(Bloomberg) – asian equities fell and futures contracts on u.s. equities have declined, because of concerns about an outbreak of the virus in several american States and some other countries, undermine the appetite for riskier assets. The dollar extended gains.
The actions of the japanese, australian and Korean have all dropped more than 1%. China and Hong Kong are closed for the holiday. Futures contracts on the S&P 500 fell, while Treasury bills increased slightly. The movements of risk have been monitoring the daily records of new cases in Florida and California, Texas suffering also. New York, New Jersey and Connecticut require that the visitors of the hot spots of virus to self-quarantine. Australia has recorded its highest increase of cases since April. The price of crude oil fell below $ 38 per barrel in New York.
Market sentiment became rapidly more negative, fearing that the propagation of the coronavirus is no obligation on the decision-makers to slow the pace or reverse the re-openings of businesses. At the same time, it is possible that the trade tensions resurface between the european Union and the United States.
“Obviously, the market has really thrills the prospect of a strong increase of Covid and it may be that the places that are opened should be closed, depressing the economy and reducing the prospects of the stock market “, Margie Patel, portfolio manager at Wells Fargo Asset Management, said on Bloomberg TV. “We’ve had such a run since the end of the month of march, it is inevitable that we should at least take a small step back to higher prices in the course of the year.”
The White House weighs new rates on $ 3.1 billion of exports to France, Germany, Spain and the United Kingdom.The us trade representative wants to impose new tariffs on european exports like olives, beer, gin and trucks, while increasing the duties on goods, including airplanes, cheese and yogurt, according to a notice posted late on Tuesday evening. The EU also discussed the opportunity to keep the door closed to u.s. travelers this summer.
Elsewhere, the international monetary Fund has downgraded its outlook for the global economy, predicting a recession much deeper and a slower than expected recovery there has only been two months. The crude oil has kept the losses of Wednesday.
Here are some key events to come:
Jobless claims, durable goods and the GDP of the United States are expected Thursday, and a rebalancing of the Russell indexes is scheduled for Friday.
Here are some of the main developments of the markets:
Futures contracts on the S&P 500 fell 0.5% at 12 h 58. in Tokyo. The index has fallen 2.6% on Wednesday. Topix of Japan dropped 1%. The S & P / ASX 200 in Australia fell 1.6%. The Kospi of South Korea dropped by 1.9%.
The yen was at 107,24 for a dollar, down 0.2% .The yuan offshore trading 7,0825 for a dollar. The euro bought 1,1243 $, little changed. The index Bloomberg Dollar Spot increased by 0.2%.
The Treasury yield 10-year is down about a basis point to 0.67%. Yields on australian 10-year fell by approximately four basis points to 0.88%.
The West Texas Intermediate crude fell 0.3% to 37,89 $ per barrel. The gold is set at 1 763,80 per ounce, up 0.2%.
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