Reuters | Jul 15, 2020 07:40
By Pete Schroeder
WASHINGTON, July 14 (Reuters) - Asian markets appeared set
to shake off heightened tensions between the United States and
China and the spread of coronavirus, with stock futures pointing
to early gains on Wednesday.
Australian S&P/ASX 200 futures YAPcm1 rose 0.47% in early
trading, Japan's Nikkei 225 futures NKc1 were up 0.7%, and
Hong Kong's Hang Seng index futures .HSI HSIc1 rose 0.46%.
E-mini futures for the S&P 500 EScv1 rose 0.82%.
The strong signals for Asian markets came after U.S.
investors shook off lingering bad news about the spread
coronavirus to send major indices higher on Tuesday, buoyed by a
rise in cyclical stocks. The Dow Jones Industrial Average .DJI
rose over 2%, while the S&P 500 .SPX gained 1.34% and the
Nasdaq Composite .IXIC climbed 0.94%. The stock surge came after three U.S. states reported new
record daily deaths from the pandemic, and as tensions continued
to grow between the United States and China.
"Markets have shown a remarkable ability to look through
rising infection rates and rising risks of lockdowns," said
Michael McCarthy, chief markets strategist at CMC Markets. "At
the moment, the market seems to be quite lively and happy to
rally on despite those increasing economic risks."
MSCI's gauge of stocks across the globe .MIWD00000PUS
closed up 0.53%.
Simmering tensions between the United States and China also
loom large, after U.S. President Donald Trump signed legislation
and an executive order to hold China "accountable" for the
national security law it imposed on Hong Kong.
New data showed U.S. consumer prices rebounded by the most
in nearly eight years in June, but a resurgence in new COVID-19
cases after the reopening of businesses suggested weak demand
could keep the Federal Reserve injecting money into an ailing
economy. There were still signs of wariness among investors, as
yields on leading U.S. and euro-zone government debt fell and
safe-haven gold prices solidified gains above $1,800 an ounce.
Fed officials warned the U.S. economy faces a longer
recovery from the pandemic, and economic pain could still worsen
as cases mount.
The Bank of Japan is expected to hold steady on policy after
Wednesday meeting, but investors will be gauging officials'
economic projections and any reassurances of additional stimulus
if needed. U.S. gold futures GCcv1 settled mostly unchanged at
$1,813.40. Spot gold XAU= rose $7.1051 to $1,809.81 an ounce.
The 10-year U.S. Treasury note US10YT=RR fell 1.5 basis points
to yield 0.6250%.
Oil prices rose slightly on Tuesday as OPEC and its allies
cut production by more than agreed to in June, although demand
concerns lingered. Brent crude LCOc1 futures settled up 18
cents at $42.90 a barrel. The dollar fell in North American trade on Tuesday as
expectations for inflation picked up slightly and the euro rose
on optimism about the possibility of a European Union stimulus
The Australian dollar AUD= rose 0.13% versus the
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
Written By: Reuters
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.
Get free real time quotes, charts and alerts on stocks, indices, currencies, commodities and bonds. Get free top of the line technical analysis/predictors.
More content, faster quotes and charts, and a smoother experience is available only on the App.