· Reflation trade won’t run out of steam anytime soon: CIO
As the world faces a new spike in Covid-19 cases, Johan Jooste from The Global CIO Office explains how it remains a big risk for markets.
· Stock futures tick higher after concerns over capital gain tax hike prompt selling
Futures contracts tied to the major U.S. stock indexes ticked higher at the start of the overnight session as investors prepared to end a down week for equities amid concerns the White House could seek a hike to the capital gains tax.
S&P 500 futures climbed less than 0.1% while contracts tied to the Dow added 22 points. Nasdaq 100 contracts also inched just north of the flatline.
Asian shares advanced on Friday, lifted by rising Chinese blue-chips and a decision by the European Central Bank to maintain stimulus, while investors largely shrugged off the impact of a possible U.S. capital gains tax hike.
But equity markets in Europe were set to open lower after two days of gains. In early European trades, pan-region Euro Stoxx 50 futures were down 0.25%, German DAX futures slipped 0.35% and FTSE futures shed 0.43%.
Modest moves in equities markets contrasted with ructions in cryptocurrencies as investors fretted over the impact of tax changes.
Bitcoin’s rout deepened, dropping below the $50,000 level to a low of $48,338.37, its lowest level in nearly seven week. Ethereum plunged nearly 12% before trimming losses, and last hovered just below $2,200, down more than 8.5% on the day.
In Asia on Friday MSCI’s broadest index of Asia-Pacific shares outside Japan shook off early small losses to rise 0.43%.
Chinese blue-chip shares rose 0.51%, supported by green and healthcare stocks. Hong Kong’s Hang Seng rose 0.54% and Seoul’s KOSPI added 0.2%.
· Japanese shares fall on pandemic concerns, Nidec outlook
Japanese shares closed lower on Friday, as stricter government curbs to contain COVID-19 infections raised economic recovery concerns, while a disappointing forecast from Nidec added to the cautious mood at the start of the corporate earnings season.
The Nikkei share average fell 0.57% to 29,020.63, while the broader Topix lost 0.39% to 1,914.98. Both indexes declined more than 2% for the week.
Nidec, a maker of precision motors used in computer hard drives and smartphones, tumbled 5.12% after its annual forecast for the current business year missed analysts' consensus.
Japanese shares were also weighed down by a weaker Wall Street finish overnight on reports that U.S. President Joe Biden planned to almost double the capital gains tax.
· Surging Covid cases globally send medical supplier stocks higher in Singapore
Shares of several medical suppliers in Singapore have jumped this month, coinciding with a renewed surge in daily global Covid-19 infections.
· European markets muted with data, earnings in focus
European markets opened slightly lower Friday as global stocks wither to end the week, with investors monitoring a slew of economic data and corporate earnings.
The pan-European Stoxx 600 slipped 0.2% below the flatline in early trade, with telecoms falling 0.5% while autos gained 0.3%
· Stronger pound, industrials drag FTSE 100 lower ahead of April PMI data
London’s FTSE 100 slipped on Friday as industrial stocks fell and a stronger pound weighed on export-oriented companies, while investors awaited a flash reading on business survey data for April later in the day.
The exporter-heavy index declined 0.4%, with large dollar-earning consumer staples companies Unilever, Diageo, and British American Tobacco slipping between 0.3% and 0.9% as the pound strengthened.
Reference: CNBC, Reuters
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