BANGKOK – Global stocks were mixed on Monday as concerns over the pandemic clouded prospects for recovery from the coronavirus crisis. Tokyo and Paris are on the rise, while Frankfurt and London are virtually unchanged.
BANGKOK – Global stocks were mixed on Monday as concerns over the pandemic clouded prospects for recovery from the coronavirus crisis.
Tokyo and Paris are on the rise, while Frankfurt and London are virtually unchanged. Benchmarks fell in Hong Kong and Shanghai and US futures were mixed.
Precautions taken by the government to tackle outbreaks indicate an uneven global recovery, economists say. This is especially true for tourism, an important industry for many parts of the region.
But investors have generally taken recent setbacks into account, as COVID-19 infections have returned to Japan, Thailand and India, among other countries.
“One thing is certain, the markets have assessed the pandemic as a sprint and not as a marathon. This premise could be stressed in the coming weeks, although I sincerely hope I am completely wrong on this front, ”Oanda’s Jeffrey Halley said in a comment.
“The nerves of the pandemic will likely be drowned this week as the pace of the data calendar accelerates,” he said.
The German DAX edged down less than 0.1% to 15,272.86 and the CAC 40 in Paris edged up 0.1% to 6,261.50. The FTSE 100 in London was almost unchanged at 6,938.5. The future of the S&P 500 slipped 0.1% while the Dow industrials contract was largely unchanged.
In Asian trade, the Tokyo Nikkei 225 added 0.4% to 29,126.23 and the Hang Seng in Hong Kong fell 0.4% to 28,952.83. In Seoul, the Kospi jumped 1% to 3,217.53. The Shanghai Composite Index fell 1% to 3,441.17 and Australia’s S & P / ASX 200 slipped 0.2% to 7,045.60.
The Indian Sensex climbed 0.9% to 48,318.57, even as authorities reported that newly confirmed coronavirus cases hit a daily high on Sunday, topping 352,000.
On Friday, the benchmark S&P 500 rose 1.1% to 4,180.17. The Dow Jones Industrial Average rose 0.7% to 34,043.49. The high tech Nasdaq climbed 1.4% to 14,016.81, while the Russell 2000 Small Cap Index rose 1.8% to 2,271.86.
Wall Street has been in rally mode in recent weeks as the rollout of COVID-19 vaccinations, massive support from the U.S. government and the Federal Reserve, and a spate of encouraging economic data fuel expectations of a stronger economy and more. ‘strong growth in corporate profits this year. .
Banks made solid gains as bond yields rose. This allows them to charge more lucrative interest on the loans. The 10-year Treasury yield rose to 1.58% from 1.56% on Friday night.
About a quarter of S&P 500 companies have released quarterly results so far this earnings season. Of those, 84% generated income above Wall Street estimates, according to FactSet.
But while corporate earnings have been mostly positive, investors weigh stronger economic growth against the threats of the pandemic and worry about potential changes in U.S. tax policy to help finance support for the recovery and massive spending on infrastructure.
This week is another busy week for earnings, with 181 S&P 500 companies including Tesla, Starbucks, Microsoft and Amazon.com expected to report results.
Meanwhile, the price of Bitcoin jumped 5.1% to $ 52,644.71. It fell about 2% to $ 50,675 on Friday, according to tracking site CoinDesk. The cryptocurrency had traded up to $ 63,000 last week.
In other trades, US benchmark crude oil lost $ 1.14 to $ 61.00 per barrel in electronic trading on the New York Mercantile Exchange. It picked up 71 cents at $ 62.14 a barrel on Friday. Brent, the international standard, fell from $ 1.82 to $ 64.29 per barrel.
The US dollar slipped to 107.70 Japanese yen from 107.93 yen. The euro went from $ 1.2094 to $ 1.2102.
Elaine Kurtenbach, The Associated Press