Join +750K new investors every month who copy stock picks from billionaire's portfoliosSign Up Free

Asia set to track Wall Street retreat as second wave derails recovery hopes

Published 25/06/2020, 09:55 am
© Reuters.
US500
-
DJI
-
JP225
-
DX
-
JP225
-
IXIC
-
MIWD00000PUS
-

By Jessica DiNapoli

NEW YORK, June 24 (Reuters) - Asian markets were set to follow a tumble in Wall Street stocks and oil prices on Thursday after surging U.S. coronavirus cases and the International Monetary Fund's downgrade to global economic projections shook confidence in a recovery.

"At the moment futures are looking at some pretty steep losses," said James Tao, a market analyst at Australian broker CommSec. "It's no real surprise considering the heavy declines on Wall Street."

Tao said spiking coronavirus cases and new restrictions aimed at tamping down the spread of the pandemic were the straw that broke the camel's back, after markets gained earlier in the week.

Australian S&P/ASX 200 futures YAPcm1 lost 1.55% in early trading. Japan's Nikkei 225 futures JNIc1 fell 1.1%.

Markets in Hong Kong and mainland China are closed for public holidays on Thursday.

On Wednesday, three U.S. states reported record increases in new cases -- Florida, Oklahoma and South Carolina -- driving the negative sentiment. Seven others had record highs earlier in the week.

The governors of New York, New Jersey and Connecticut, initially hard hit by the pandemic, ordered travelers from nine other states to quarantine for 14 days on arrival as COVID-19 showed signs of rising in other areas. International Monetary Fund said it now expects a deeper recession, with global output to shrink 4.9% this year, much sharper than the 3.0% contraction predicted in April. gauge of stocks across the globe .MIWD00000PUS shed 2.24%.

On Wall Street, the Dow Jones Industrial Average .DJI fell 2.72%, the S&P 500 .SPX lost 2.59% and the Nasdaq Composite .IXIC dropped 2.19%.

"The pace of the acceleration (of new cases) is causing businesses and consumers to act, with Open Table showing restaurant bookings have dived in the southern U.S.," the National Australia Bank said in a research note.

"Governors in the southern states who have been reluctant to reimpose restrictions have also sharply changed their rhetoric. These trends threaten the pace of the tentative recovery seen in the data to date."

Oil prices tumbled as much as 5%, or more than $2 a barrel on Wednesday, due to the growing COVID-19 cases and rising oil inventories. dollar strengthened on the concerns of a slower economic recovery. The dollar index =USD rose 0.624%. FRX/

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Global assets

http://tmsnrt.rs/2jvdmXl Global currencies vs. dollar

http://tmsnrt.rs/2egbfVh Emerging markets

http://tmsnrt.rs/2ihRugV MSCI All Country Wolrd Index Market Cap

http://tmsnrt.rs/2EmTD6j

^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.