Major indexes in Asia closed with losses. Japan's Nikkei 225 (N225) ended the day down 0.8% after recovering from a much larger drop in early trading. Hong Kong's Hang Seng (HSI) declined 1%, while China's Shanghai Composite (SHCOMP) ended little changed.
But the mood was more positive in other regions. The FTSE 100 (UKX) opened with a modest gain, while Germany's DAX (DAX) and France's CAC 40 (CAC40) added roughly 0.5%. Dow (INDU) futures were last up more than 400 points, or 1.6%. S&P 500 (SPX) futures gained 1.4%, while Nasdaq (COMP) futures advanced 1.3%.
US stocks were hammered on Thursday as fears about an increase in coronavirus cases and a somber economic outlook from the US Federal Reserve forced investors to confront risks that had been pushed aside during the huge market rally that has taken place since March.
US stocks plummeted in the final hours of trading on Thursday. The Dow (INDU) shed 6.9%, falling below 26,000 points for the first time since the start of June. The S&P 500 (SPX) ended down 5.9%, closing at its lowest total points since late May, while the Nasdaq (NDX) closed 5.3% lower.
Kevin Giddis, chief fixed income strategist at Raymond James, said the sell-off was prompted by the realization among many investors that the US economy will take longer to recover from the pandemic than expected.
"The risk markets got a huge boost last week with the reopening of the US economy and a better-than-expected jobs report," he said. "However, the timing [of the recovery] may not be as optimistic as the markets first thought."
Jeffrey Halley, senior market analyst for Asia Pacific at Oanda, said that US markets are likely to continue to set the tone for global stocks. "All eyes will be on the US ... and whether the correction continues or is forgotten as quickly as it began," he wrote in a research note. "A sensible case can be constructed for either outcome and a wait and see strategy is the best one."
Oil markets were also lower on Friday after US crude prices crashed 8% Thursday — likely a response to fears about the uptick in infections in the world's largest oil consuming economy, according to Stephen Innes, chief global markets strategist at AxiCorp. Any new shutdowns to contain the virus would slam energy demand again.
US oil briefly sank more than 5% early in the Asia day, though futures recovered and were last trading down 3.4% at $35.09 per barrel. Brent, the global benchmark, dropped 3% to $37.40 per barrel, extending Thursday's steep declines.
— Anneken Tappe and Tami Luhby contributed to this report.
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June 12, 2020 at 03:42PM
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Global markets stabilize after coronavirus fears spark huge Wall Street sell-off - CNN
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