Stocks

Asian stocks, yields slip as investors turn cautious

Reuters NEW YORK | Updated on August 07, 2020 Published on August 07, 2020

Global equity markets slipped and bond yields fell on Thursday as investors awaited an agreement on a U.S. aid package to mitigate the fallout from the coronavirus crisis, with poor corporate earnings reports also weighing on European shares.

Safe-haven gold extended its record-breaking run, driven by expectations of more stimulus to counter the pandemic, while the dollar gained after data suggested the U.S. labor market is stalling amid a resurgence in COVID-19 cases.

At 8.10 IST, The Japan’s Nikkei index declined 111.88 points, or 0.50%, to 22,305.29 and the Hong Kong Hang Seng index was quoted lower by 415.17 points, or 1.66%, to 24,516.98.

Initial claims for state unemployment benefits fell 249,000 to a seasonally adjusted 1.186 million for the week ended August 1, the Labour Department said, the lowest reading since mid-March.

The four principal negotiators in Washington appeared to be near agreement on some topics, but still trillions of dollars apart on major issues, including the size of a federal benefit for tens of millions of unemployed workers.

The Dow Jones Industrial Average rose 185.46 points, or 0.68%, to 27,386.98, and the Nasdaq Composite added 141.65 points, or 1.27%, to 11,267.08.

Treasury yields fell, with the 10-year note sliding to 0.504% at one point, its lowest ever after a big down spike on March 9. The benchmark note last yielded 0.5232%.

The euro climbed to its highest against the dollar since May 2018 before giving up its gains. The euro was up 0.19% to $1.1883.

The weak dollar/strong euro trend will continue into next year, a Reuters poll showed, on expectations the U.S. economic recovery is flagging, especially compared with Europe.

The dollar index fell 0.091%, while the Japanese yen strengthened 0.13% versus the greenback at 105.40 per dollar.

Spot gold prices rose $19.7201, or 0.97%, to $2,059.12 an ounce.

Oil prices hovered near five-month highs as support from a weak dollar and falling U.S. crude inventories countered bearish sentiment on fuel demand.

Brent crude futures rose $0.38 to $45.55 a barrel. U.S. crude futures gained $0.20, to $42.39 a barrel.

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

Published on August 07, 2020
This article is closed for comments.
Please Email the Editor