· Stock futures are flat amid renewed concern about pandemic recovery
U.S. stock futures were flat in overnight trading on Tuesday amid renewed investor concern about the global recovery from the coronavirus pandemic.
Dow futures rose 10 points. S&P 500 futures gained 0.04% and Nasdaq 100 futures rose 0.15%.
On Tuesday, stocks tied to an economic recovery led the losses amid rising new coronavirus cases in the U.S. and abroad.
The Dow Jones Industrial Average lost more than 300 points, dragged down by a 3.4% drop in Caterpillar’s stock. The S&P 500 fell 0.76% with major losses from airlines and cruise lines. The Nasdaq Composite dropped 1.12% as Facebook, Apple and Tesla all closed lower.
· Asian shares hit two-week lows, dollar gains as investors scurry for cover
Asian shares skidded to a two-week trough on Wednesday and the dollar neared four-month highs as coronavirus lockdowns in Europe and potential U.S. tax hikes hit risk appetite, leading to a flight to safety.
U.S. and European stock futures were weaker in late Asian trading. E-Mini futures for the S&P 500 were down 0.1%, London’s FTSE futures were 0.65% lower while eurostoxx 50 futures lost 0.6%.
MSCI’s broadest index of Asia-Pacific shares outside of Japan fell 1.3% after losing 0.9% on Tuesday. It went as low as 674.18 points, a level last seen on March 9.
The index has had a disappointing run in March after five straight months of gains, as risk assets were earlier spooked by fears inflation will pick up at a faster-than-expected pace led by successful coronavirus vaccine rollouts and massive U.S. fiscal stimulus.
· Japan stocks extend fall as lockdown worries return
Japan’s Nikkei share average fell on Wednesday for the fourth consecutive session as renewed concerns about the return of coronavirus lockdowns in Europe and declining oil prices dented hopes of an acceleration in the global economy.
The Nikkei 225 Index ended down 2.04% at 28,405.52. The broader Topix fell 2.18% to 1,928.58, posting its biggest daily percentage decline since Feb. 26, and its third straight session of decline.
Energy shares led the decline as Germany’s extension of pandemic lockdowns and lingering doubts about the safety of a popular coronavirus vaccine curbed expectations for a rebound in economic growth and demand for oil.
However, some technology shares got a boost from plans to increase investment in the production of cutting-edge semiconductors to ease global supply shortages.
Sentiment for Japanese shares was somewhat cautious as investors are expected to book profit before the fiscal year ends on the last day of this month.
· Chinese shares hit 3-month closing low on policy tightening concerns
Chinese shares fell on Wednesday to their lowest close in three months as risk appetite soured on concerns of policy tightening and escalating tensions between China and major western economies.
At the close, The blue-chip CSI300 index was down 1.61% at 4,928.69, the lowest close since Dec. 11, while the Shanghai Composite index fell 1.3% to 3,367.06, the weakest close since Dec. 24.
· Europe’s stocks fall amid concerns over recovery, PMIs ahead
European stocks retreated on Wednesday amid renewed concerns over the global economic recovery outlook, given a surge of Covid infections in Europe and renewed lockdowns.
The pan-European Stoxx 600 dropped 0.5% in early trade, with retail stocks shedding 1.4% to lead losses as all sectors slid into the red except technology, which gained 1.4%.
The negative trade in Europe follows a similar pattern in Asia-Pacific, where shares were largely lower as concerns over the world’s recovery from the pandemic weighed on investor sentiment. U.S. stock futures were mixed in early Wednesday morning.
Reference: CNBC, Reuters
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