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Stocks Dip With China Data Showing Uneven Recovery: Markets Wrap
(Bloomberg) -- Asian stocks were lower Thursday along with European and U.S. equity futures as investors parsed a slew of economic data in China that showed the path of economic recovery from the pandemic remains bumpy. The dollar edged higher.Equities in China were down about 1%. Shares were also lower in Japan, South Korea, Hong Kong and Australia. S&P 500 contracts slipped after a positive Wednesday session on signs of progress in developing a vaccine for the coronavirus. Twitter Inc. fell in after-hours trading after accounts of some of America’s most prominent political and business leaders were hacked. Crude oil declined, while Treasuries were little changed. The Thai baht retreated.While the Chinese economy returned to growth in the second quarter, retail sales in June missed estimates as they continued to contract, highlighting how confidence remains fragile.”The problem is, this is still uneven,” as the economy reopens, Helen Qiao, chief greater China economist at Bank of America Corp., said on Bloomberg TV. “It is hard to see how China can remain on a firm footing at a time when the rest of the world is still coping with a very deep recession.”The reminder of the long road ahead to a full global recovery contrasted with the rush of optimism in financial markets earlier in the week due to progress in vaccine development. Meantime, President Donald Trump has indicated to aides that he doesn’t want to further escalate tensions with Beijing, and has ruled out additional sanctions on top officials for now, according to people familiar with the matter. His administration is considering a sweeping ban on travel to the U.S. by Chinese Communist Party members, though Trump may in the end reject the plan, according to a report.Here are some key events coming up:The European Central Bank meets to set monetary policy on Thursday, with President Christine Lagarde holding a virtual press conference afterward.These are the main moves in markets:StocksFutures on the S&P 500 Index fell 0.5% as of 11:27 a.m. in Tokyo. The gauge rose 0.9% on Wednesday.Japan’s Topix index slid 0.3%.Hong Kong’s Hang Seng index fell 1.1%.The Shanghai Composite dipped 1.3%.Australia’s S&P/ASX 200 Index slipped 0.4%.Euro Stoxx 50 futures lost 0.9%.CurrenciesThe yen was at 106.96 per dollar, little changed.The offshore yuan traded at 6.9971 per dollar, down 0.2%.The euro bought $1.1404.The Bloomberg Dollar Spot Index edged higher after falling 0.3% on Wednesday.BondsThe yield on 10-year Treasuries slipped to 0.62%.Australia’s 10-year yield was steady at about 0.87%.CommoditiesWest Texas Intermediate crude oil fell 0.7% to $40.92 a barrel.Gold was at $1,808.63 an ounce, down 0.1%.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
https://finance.yahoo.com/news/asia-stock-head-muted-start-213003693.html?.tsrc=rss
(Bloomberg) -- Asian stocks were lower Thursday along with European and U.S. equity futures as investors parsed a slew of economic data in China that showed the path of economic recovery from the pandemic remains bumpy. The dollar edged higher.Equities in China were down about 1%. Shares were also lower in Japan, South Korea, Hong Kong and Australia. S&P 500 contracts slipped after a positive Wednesday session on signs of progress in developing a vaccine for the coronavirus. Twitter Inc. fell in after-hours trading after accounts of some of America’s most prominent political and business leaders were hacked. Crude oil declined, while Treasuries were little changed. The Thai baht retreated.While the Chinese economy returned to growth in the second quarter, retail sales in June missed estimates as they continued to contract, highlighting how confidence remains fragile.”The problem is, this is still uneven,” as the economy reopens, Helen Qiao, chief greater China economist at Bank of America Corp., said on Bloomberg TV. “It is hard to see how China can remain on a firm footing at a time when the rest of the world is still coping with a very deep recession.”The reminder of the long road ahead to a full global recovery contrasted with the rush of optimism in financial markets earlier in the week due to progress in vaccine development. Meantime, President Donald Trump has indicated to aides that he doesn’t want to further escalate tensions with Beijing, and has ruled out additional sanctions on top officials for now, according to people familiar with the matter. His administration is considering a sweeping ban on travel to the U.S. by Chinese Communist Party members, though Trump may in the end reject the plan, according to a report.Here are some key events coming up:The European Central Bank meets to set monetary policy on Thursday, with President Christine Lagarde holding a virtual press conference afterward.These are the main moves in markets:StocksFutures on the S&P 500 Index fell 0.5% as of 11:27 a.m. in Tokyo. The gauge rose 0.9% on Wednesday.Japan’s Topix index slid 0.3%.Hong Kong’s Hang Seng index fell 1.1%.The Shanghai Composite dipped 1.3%.Australia’s S&P/ASX 200 Index slipped 0.4%.Euro Stoxx 50 futures lost 0.9%.CurrenciesThe yen was at 106.96 per dollar, little changed.The offshore yuan traded at 6.9971 per dollar, down 0.2%.The euro bought $1.1404.The Bloomberg Dollar Spot Index edged higher after falling 0.3% on Wednesday.BondsThe yield on 10-year Treasuries slipped to 0.62%.Australia’s 10-year yield was steady at about 0.87%.CommoditiesWest Texas Intermediate crude oil fell 0.7% to $40.92 a barrel.Gold was at $1,808.63 an ounce, down 0.1%.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
https://finance.yahoo.com/news/asia-stock-head-muted-start-213003693.html?.tsrc=rss
