· S&P 500: Futures extend Wednesday’s losses below 3,100 amid virus woes
S&P 500 Futures drop to 3,082, down 0.80% on a day, as Tokyo opens for trading on Thursday. The derivation of the US equity benchmark portrays a two-day losing streak while taking rounds to the intraday low as we write. The reason could be traced from increasing fears of the coronavirus (COVID-19) outbreak in the US after updates from Beijing, Japan and Germany have been worrisome.
Texas COVID-19 cases have risen by 3.4%, above the seven-day average of 2.7% while a jump in hospitalization rates in Florida, Arizona and Oklahoma also suggest that another round of the pandemic is brewing in the US. On the other hand, Beijing grounded a major chunk of its flight operations while also recalling a semi-lockdown in the city. Even so, the latest numbers of virus figures from China and Beijing suggest receding pessimism.
Recently weighing the risk-tone sentiment could be a survey of Japanese firms suggests that the deadly virus hurts jobs and wages into the world’s third-largest economy. Elsewhere, the geopolitical tussles between India and China, as well as Korean neighbors, add to the cautious mood of traders.
Considering the aforementioned downbeat catalysts, the risk gauge failed to cheer positive comments from Cleveland Federal Reserve President Loretta Mester and US Trade Representative (USTR) Robert Lighthizer.
In addition to the S&P 500 Futures, the US 10-year Treasury yields and Japan’s Nikkei 225 also portrays the risk-off mood. The US bond yields stay depressed near 0.73% whereas Japan’s equity benchmark flashes 0.55% losses at the press time.
Moving on, a lack of major data/events could keep the risk-tone taking clues from the geopolitical and virus updates for fresh impulse in Asia.
· Global stocks retreat as investors fret over coronavirus relapse
Asian stocks and Wall Street futures fell on Thursday as spiking coronavirus cases in some U.S. states and in China dented hopes of a quick global economic comeback from the pandemic.
S&P 500 mini futures EScv1 fell as much as 1.4% in early Asian trade and last traded down 0.7% while MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS shed as much as 1% before paring losses to 0.15%.
The daily count of infections hit a new high in California and Texas, the two most populous states in the country, while Florida, the third largest, also recorded its second-highest daily increase.
Several other U.S. states including Oklahoma, where President Donald Trump plans a campaign rally on Saturday, reported a surge in new infections.
In China, Beijing cancelled scores of flights, shut schools and blocked off some neighbourhoods as it ramped up efforts to contain a coronavirus outbreak that has fanned fears of wider contagion.
Some investors also worried about further paralysis in Washington as Trump’s former national security adviser John Bolton accused him of sweeping misdeeds that included explicitly seeking Chinese President Xi Jinping’s help to win re-election.
· Tokyo shares end lower as rising virus cases cloud recovery hopes
Japanese shares closed lower on Thursday as increasing cases of the novel coronavirus across the United States and China raised concerns about a swift recovery in the global economy.
The benchmark Nikkei average fell 0.45% to 22,355.46, with 58 advancers against 161 decliners.
While Beijing extended movement curbs to contain the spread of COVID-19, the daily count of infections hit a new high in California and Texas and Florida recorded its second-highest daily increase.
Higher U.S. infections also pushed the benchmark S&P index 0.3% lower on Wednesday.
The broader Topix fell by 0.25% to 1,583.09, with 24 of the 33 sector sub-indexes on the Tokyo exchange posting declines.
· China stocks end higher as Beijing pledges reforms, liquidity
China stocks ended firmer on Thursday, as policymakers assured investors that the economy is gradually recovering from the coronavirus crisis, while pledging more reforms and liquidity to bolster capital markets.
At the close, the Shanghai Composite index was up 0.12% at 2,939.32, while the blue-chip CSI300 index was up 0.67%.
The smaller Shenzhen index ended up 0.24% and the tech-heavy start-up board ChiNext Composite index was higher by 0.091%.
China will maintain ample financial system liquidity in the second half of the year as the economy recovers from the coronavirus but will need to consider withdrawing that support at some point, its central bank governor warned on Thursday.
· European stocks open lower as fears grow over a rise in coronavirus cases
European stocks opened lower Thursday as investors watch a surge in U.S. coronavirus cases.
The pan-European Stoxx 600 fell 0.4% in early trade, with travel and leisure stocks shedding 1.5% to lead losses as almost all sectors and major bourses slid into negative territory.
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