· S&P 500 ends higher as traders weigh stimulus and virus worries
The S&P 500 ended higher on Friday as investors weighed the prospect of more fiscal stimulus against fears of further business disruptions due to a record rise in COVID-19 cases.
The Dow Jones Industrial Average fell 0.23% to end at 26,672.36 points, while the S&P 500 gained 0.29% to 3,224.75.
The Nasdaq Composite climbed 0.28% to 10,503.19.
For the week, the S&P 500 and the Dow rose 1.2% and 2.3%, respectively, after optimism over an eventual coronavirus vaccine and hopes of a post-pandemic economic recovery helped investors look past a continuous surge in COVID-19 cases. The United States witnessed 77,000 new infections on Thursday.
The Nasdaq ended 1.1% lower for the week as investors sold shares of high-flying companies including Microsoft Corp and Amazon.com Inc and moved into cyclical sectors.
This week, second-quarter earnings season shifts into high gear with reports expected from corporate heavyweights including Microsoft, Tesla, Intel and Verizon Communications.
· European stocks close mixed as EU leaders meet for stimulus talks; autos up 1.5%; Ericsson soars 11%
European stocks closed mixed Friday as European Union leaders discussed a deal on the bloc’s key coronavirus recovery package, while U.S. cases continued to soar.
After a cautiously optimistic open, the pan-European Stoxx 600 was hovering just above the flatline at the close. Autos jumped 1.5% while banks fell 1%.
Stocks followed the cautious tone seen overnight in Asia, where markets were a mixed bag on the last day of the trading week.
EU leaders met in Brussels on Friday looking to hash out a deal on the proposed 750 billion euro ($853.8 billion), which could face opposition from the “frugal four” member states of Austria, Denmark, Sweden and the Netherlands. The bill may also be subject to a veto from Hungary, which has opposed linking the distribution of funds with the upholding of the EU’s democratic values.
· Asia Pacific markets mixed as investors await release of China’s benchmark lending rate
Stocks in Asia Pacific were mixed in early trade on Monday as investors awaited the release of China’s benchmark lending rate.
Japan’s Nikkei 225 rose 0.19%, with some gains seen in the tech sector. The Topix was flat in early trade.
Japan’s exports dived 26.2% in June from a year earlier, data showed, according to Reuters. That was a worse decline than expected as economists in a Reuters poll had predicted a 24.9% decline. Imports fell 14.4%, compared with expectations of a 16.8% decline, according to Reuters.
In May, Japan’s exports had fallen 28.3%, the fastest pace since the global financial crisis as U.S.-bound car shipments plunged, according to Reuters.
Autos, a big export sector for Japan, fell in early trade. Nissan declined 2.39%, Mitsubishi Motor tumbled 2.12% and Suzuki dived almost 2%.
Shares in Australia fell, with the S&P/ASX 200 declining 0.23% as financials saw declines across the board. Over in South Korea, the Kospi edged down 0.18%.
Overall, MSCI’s broadest index of Asia-Pacific shares outside Japan traded flat.
In other expected developments on Monday, China is due to release its loan prime rate. A Reuters poll found that it is expected to keep its benchmark lending rate steady for the third straight month.
Over in Hong Kong, markets will be watched for reaction as the city tightened restrictions again after reported cases surged to more than 100 in 24 hours over the weekend. Hong Kong leader Carrie Lam said the situation was “very serious and there is no sign of it coming under control,” according to Reuters.
· Thai protesters call for government to resign
Around 2,500 Thai protesters on Saturday evening demanded the resignation of the government and the dissolution of parliament, defying a coronavirus ban on gatherings in one of the largest street demonstrations since a 2014 military coup.
People at the student-led rally near Bangkok’s Democracy Monument cited a litany of complaints against the year-old civilian government of Prime Minister Prayuth Chan-ocha, the former army chief who ousted an elected government six years ago.
Organisers issued three demands: the dissolution of parliament, an end to harassment of government critics, and amendments to the military-written constitution that critics say virtually guaranteed victory for Prayuth’s party in elections last year.
Reference: CNBC, Reuters
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